Table of Contents
Subjects to be Addressed in the “3 years of value creation”
Creating New Corporate Value
―Corporate Customers Ⅰ- Increasing Loans and Business Share 8 ―Corporate Customers Ⅱ- Information Coordination Function and Business in Growth Sectors 9
―Individual Customers Ⅰ- Transactions with High Net Worth Clients 10 ―Individual Customers Ⅱ- Increasing Group Total Balance of Financial Products 11 ―Individual Customers Ⅲ- Housing Loans 12 ―Individual Customers Ⅳ- Unsecured Consumer Loans, Credit Card Business 13 ―Strengthening the Channel Strategy Ⅰ- Branch Network Strategy 14 ―Strengthening the Channel Strategy Ⅱ- Utilizing IT Systems 15 ―Strengthening International Business in Response to Globalization 16 ―Enhancing Investment in the Market 17 ―Improving Customer Satisfaction 18
Further Improving Staff Training 19
Building a Sustainable Management Structure 20
―Strengthening the Group Management Structure 21
―Increasing Sustainable Shareholder Value 22
―Enhancing CSR Management 23
(Reference) Breakdown of Increase of Loans and Gross Business Profits 24
Summary of the 12th Medium Term Management Plan
Review of the Previous Medium Term Management Plan 3
Economic Environment 4
Summary of the “Best Bank 2020 – 3 years of value creation” 5 Numerical Targets of the “Best Bank 2020 – 3 years of value creation” 6
Summary of the 12th Medium Term Management Plan
Review of the Previous Medium Term Management Plan
Established a robust management system through “1
st1
st” (Double First), “Frontier 70”
April 2009 – March 2011
The 10th Medium Term
Management Plan
“1
st1
st”(Double First)
April 2011 – March 2014
The 11th Medium Term
Management Plan
“Frontier 70”
April 2014 – March 2017
The 12th Medium Term
Management Plan
“Best Bank 2020
– 3 years of value creation”
Subject Ⅰ
Strengthening the financial
intermediation functions and providing high-quality financial services
Subject Ⅱ
Establishing a robust management structure
Subject Ⅲ
Enhancing the development of human
Subject Ⅰ
Strengthening the business structure
Subject Ⅱ
Assisting the regional economy
Subject Ⅲ
Enhancing the management structure
Subject Ⅳ
Improving the development of human
・ Diversification of loan techniques (PFI・ABL) ・ Progress of integration between Bank and Securities
・ Increase in new unsecured loans and profit made in credit card business ・ Improvement in skills for making proposals utilizing IT systems
・ Support for reconstruction work related to the Earthquake ・ Contribution to activities in the region
・ Introduction of an outside director
・ Basic agreement on mainframe system of TSUBASA project ・ Preparing for Basel Ⅲ
・ Development of a highly professional workforce ・ Trainees in different business fields
September 2008
Economic recession after the Lehman shock
March 2011 Great East Japan
Earthquake
Progress of Abenomics
Review of the previous medium term management plan “Frontier 70”
3.8 4.0 -10 -8 -6 -4 -2 0 2 4 6 2012/ 10-12 2013/ 1-3 4-6 7-9 10-12 16,291 8,000 10,000 12,000 14,000 16,000 18,000 10 2013/1 4 7 10 2014/1
Economic Environment
Japan’s economy is recovering, accelerating developments in Chiba prefecture for the Tokyo Olympic and Paralympic Games in 2020
Sales
Financial Statement Statistics
of Corporations by Industry
(YoY growth rate)
(%)
Capital investments
Chiba
Infrastructure developments in Chiba prefecture
Tokyo
Narita InternationalAirport Haneda Airport Ken-O Expressway Tokyo-Bay Aqua-Line Continuing toll discount
Economic effect: ¥71.1Bil.*
Opening April 12, 2014 Daiei JCT Inashiki IC Matsuo– Yokoshiba IC
Direct Line between Narita and Haneda
Misato–minami IC Opening FY17 Kohya JCT Tokyo-Gaikan Expressway Opening FY14
The site for the Tokyo Olympic and Paralympic Games in 2020
New Tokyo Station
Togane IC・JCT Kisarazu–higashi IC Kozaki IC In progress Remaining costs: about ¥110Bil.*
Nikkei 225
(Month-end closing price)Direct or indirect demands due to Tokyo Olympic and Paralympic Games in Chiba prefecture: ¥85.2Bil.*
*Calculated by Chibagin Reseach Insutitute. (¥)
Summary of the “Best Bank 2020 – 3 years of value creation”
The 12th Medium Term Management Plan
Best Bank 2020 - 3 years of value creation
April 1, 2014 → March 31, 2017 (3 years)
We shall aim to be a “best retail” banking group, providing first-class value with the implementation of a “customer first policy”, and pursuing business vigorously.
Subjects to be addressed in the “3 years of value creation”
●【Corporate customers】 Strengthening functions to support
business growth and resolution of management issues
● 【Individual customers】 Providing carefully tailored services in response to diversified lifestyles
●Strengthening the channel strategy
●Strengthening international business in response to globalization and enhancing investment in the market
●Improving customer satisfaction
Creating new corporate value
●Developing a highly professional workforce
● Making the most of human resources to bring out the motivation and skills of staff, such as support for the active participation of women
●Creating a corporate culture that generates new ideas
Further improving staff training
●Further promoting the TSUBASA project and ensuring the steady implementation of cooperation on the mainframe system
●Increasing business efficiency and profitability
●Strengthening the risk management structure
●Ensuring thorough compliance and protection of customers
●Strengthening the group management structure
●Enhancing CSR management and increasing sustainable shareholder value
Building a sustainable management structure
Targets to be achieved in the “3 years of value creation”
Visions as of year 2020 (6 years later)
Consolidated Net Income
¥50 billion
Consolidated ROE
In 6% range
Consolidated Common Equity Tier1 Capital Ratio
In 13% range
Balance of Loans
Around ¥9 trillion
Balance of Deposits
Around ¥11 trillion
Group Total Balance of Financial Products
Around ¥2.4 trillion
Consolidated Net Income
¥60 billion
Consolidated ROE
Around 7%
Consolidated Common Equity Tier1 Capital Ratio
In 13% range
Balance of Loans
Around ¥10 trillion
Balance of Deposits
Around ¥12 trillion
Group Total Balance of Financial Products
Numerical Targets of the “Best Bank 2020 – 3 years of value creation”
Previous medium term management plan
New medium term management plan
Visions as of 6 years later
FY2013 FY2016 FY2019
(Projection) (Target) (Reference)
Gross business profits 150.0 153.0
Net interest income 126.0 129.0
Net fees and commissions income 17.5 18.5
Gains (losses) related to bonds 3.0 1.7
Expenses (-) 82.5 84.0
Personnel (-) 41.2 41.7
Non-personnel (-) 36.9 37.0
Real net business income 67.5 69.0
Core net business income 64.5 68.0 92.0
Ordinary profit 69.5 70.0
Net income 42.0 45.5 55.0
Consolidated net income 45.0 50.0 60.0
Net credit costs (-) 3.0 4.5
Consolidated ROE Around 6% Around 6% Around 7%
Consolidated common equity Tier1 capital ratio Around 13% In 13% range In 13% range
Aim to achieve ¥60 billion in Consolidated net income as of 6 years later, enhancing the top line
Subjects to be Addressed in the “3 years of value creation”
3,075 4,087 4,096 4,176 4,147 4,000 4,400 5,000 3,000 3,500 4,000 4,500 5,000 5,500
FY08 FY09 FY10 FY11 FY12 FY13 FY16 FY19 3,024 3,119 3,600 3,900 2,500 3,000 3,500 4,000 09/3 11/3 14/3 17/3 20/3
Creating New Corporate Value
Corporate Customers
Ⅰ
- Increasing Loans and Business Share
●
Increase loans and business share, through clearly focused business activities based on the region
●
Expand the number of main bank customers, enhancing the promotion of all-round services such as settlement transactions and businesses owner accountsBalance of loans for SMEs Number of new corporate loan customers
Increase loans and business share, enhancing the promotion of all-round transactions
Increase staff for corporate business
(Work volume base)
Founding
stage Growing stage Maturing stage
Provide solutions according to corporate life cycles
Support for founders
Himawari Venture Development Fund ABL / Securitization / Syndicated loan
Utilize public support systems Succession / M&A
Business revitalization support (Estimate)
14/3 20/3
Further enhance business for corporate customers
Strengthen business in growth sectors
Medical / Nursing Agriculture
Tourism Environment
Social Infrastructure (PFI)
International Business ・Actively participate in financial needs ・Enhance support to found
agricultural corporations
・Increase loans for renewable energy businesses
・Foster economic vitality in cooperation with government for Tokyo Olympic Games
・Expand foreign currencies handled, etc.
・Enhance response to renovation demands of social infrastructure
“1st 1st” (Double First) “Frontier 70”
“Best Bank 2020”
+30%
(¥Bil.)
(Target) (Reference) (Projection) (Target) (Reference)
35 40 25 30 35 40 14/3 17/3 20/3 25 100 0 25 50 75 100
FY13 FY16 FY19
1.4 1.7 0.5 1.0 1.5 2.0
FY13 FY16 FY19
Creating New Corporate Value
Corporate Customers
Ⅱ
-
Information Coordination Function and Business in Growth Sectors
Strengthen cooperation with local government, increase loans for business in growth sectors with various loan techniques
●
Strengthen consulting function for business in growth sectors and enhance responses to financial demands
●
Strengthen coordination function in the region
●
Strengthen information business aimed at attracting companies into Chiba prefecture and promoting regional development
Regional Business Information Division (April 2014)
Coordinate regional business information
Local government
University / Research institution
Companies come into
Chiba prefecture Companies related to developments
Local SMEs
NPO corporations
●
Increase new loans and net fees and commissions income, providing various loan techniques such as ABL, Securitization and Syndicated loans, etc.
Effective land utilization / Tenant mediations
Balance of loans for PFI Fees and commissions income
for corporate customers NEW
Business Solution and Support Department Increased staff (June 2013)
New loans for project finance within and outside Japan
(Arrangement and agent fees) ・Needs for effectively utilizing land
Strengthen cooperation with housing corporations ・Enhancing businesses at 9 branches along the Tsukuba Express Line
・Enhancing business matching related to construction
300
500
0 250 500
FY13 FY16 FY19
199 212 222 231 243 252 160 200 240 280
FY08 FY09 FY10 FY11 FY12 FY13
Creating New Corporate Value
Individual Customers
Ⅰ
- Transactions with High Net Worth Clients
Expand transactions with high net worth clients, integrating Bank and Securities, enhancing services related to succession and inheritance
●
Strengthen functions of planning and promoting services related to succession and inheritance for high net worth clients, landowners and business owners●
Expand services related to inheritance utilizing trust functions, such as testamentary trust
and property management
Corporate Business Division “Private Advisory Office”
(April 2014)
・Comprehensive advisory services, adding specialized staff for Insurance to Succession, Inheritance, Financial Advisory and Private Banking teams.
Fees and commission income for trust business
●
Expand transactions with high net worth clients, enhancing lineup of financial products (Bank, Securities, Trust and Insurance) and proposal skills
Private Banking Team
Newly founded
(October 2012) Increased offices (April 2014)
Increased staff
NEW
Membership system for high net worth clients (Chibagin Dream Club)
Alliance with Lombard’ Odier Darier Hentsch (Japan)
○Arranged ”Himawari Fund”
For institutional investors and high net worth clients
Started February 2014
Increase of high net worth clients year on year
(Number of members)
Expanded area
(October 2013)
○Alliance with Lombard’ Odier Darier Hentsch
(Japan) (June 2010)
(¥Mil.)
(Estimate) (Target) (Reference)
(Estimate) (Thou.)
1,500 2,000 2,500 3,000 14/3 17/3 20/3 6,107 6,594 6,999 7,402 5,000 6,000 7,000 8,000 07/3 09/3 11/3 13/3 87 123 40 60 80 100 120 140
FY13 FY16 FY19
Creating New Corporate Value
Individual Customers
Ⅱ
- Increasing Group Total Balance of Financial Products
Increase the total group balance of financial products to around ¥3 trillion as of 6 years later, promoting a range of financial assets
●
Increase the total group balance of financial products, through expansion of individual investors, utilizing NISA, etc.
Total balance of financial products
Measures for increasing the balance of financial products
●
Promote NISA (Saving account for small amounts of money)
・Ensure thorough approach to NISA accounts holders
・Develop product lineup for NISA
2,400
3,000
+500
+600
●
Enhance product lineup for investment trusts
・Enhance products in response to customer needs and change of market environment, etc.
Sales on introduction from Bank
“Chibagin Consulting Plaza Ichikawa”
(April 2014)
New type of branch specializing in consultancy
Securities
Chibagin Securities’ sub-branch
Asset Management
Money Planning Desk
NEW
●
Improve proposal skills and attractiveness of asset management products, enhancing integration between Bank and Securities, etc.
Steady increase in financial funds
Personal deposits
(¥Bil.)
(¥Bil.) (¥Bil.)
44 44 46 50 56 40 45 50 55 60 09/3 10/3 11/3 12/3 13/10 2,500 3,000 3,500 4,000 11/3 14/3 17/3 20/3
Creating New Corporate Value
Individual Customers
Ⅲ
- Housing Loans
Increase the balance of housing loans, strengthening the functions of Loan Centers, etc.
●
Strengthen the promotion function
for loan business
●
Strengthen the functions of Loan Centers
loan operations
Consumer Loan Business Division
(April 2014)
NEW
Balance of housing loans
3,250
3,630
+370
+380
Loan Centers and Loan Plazas
Measures for increasing the balance of housing loans
Pursue thorough promotion of housing loans,
increasing staff
●
Expand business promotion areas
・Consider increasing Loan Center offices●
Improve job efficiency
・Delegated authority to Head of Loan Center (speed up responses, etc.)
・Strengthen the functions, putting operations and staff together
●
Expand products and access channels
・Develop loans for elderly (Reverse mortgages, etc.)
・Enhance and expand applications for housing loans via internet
2,545.6
Number of Loan Centers and Loan Plazas
(Estimate) (Target) (Reference) LPLC::Loan PlazaLoan Center ( Projects and mediation by large housing corporations ) ( Opening hours:weekdays 10:00-18:00 / weekend 10:00-17:00 ) Affiliated LC Chiba-chuo LP Funabashi LP Narita LC Kashiwa LP Tokyo LC Affiliated LC (Shinjuku Office) Affiliated LC (Minami-Nagareyama Office) Newly founded Tokyo Metropolitan area
Newly founded
Along the Musashino-Line / TX
Increased staff Mainly large developers Affiliated condominium projects (¥Bil.)
50 100 150
11/3 12/3 13/3 14/3 17/3 20/3
Creating New Corporate Value
Individual Customers
Ⅳ
- Unsecured Consumer Loans and Credit Card Business
Increase balance of unsecured consumer loans to ¥150 billion as of 6 years later
Balance of unsecured consumer loans
0.5 1.0 1.5 2.0 2.5 FY13 FY16 20/3
Profit related to group credit card business
●Newly established internet branch (P15)
●Utilize internet channel and call center
●Develop new loan products
●Enhance cross-selling
Measures for enhancing unsecured consumer loans
●Increase number of online applicants
●Provide card type transaction products in response to changes in
the environment
Measures for enhancing credit card business
New internet application form Call Center Chibagin Loan Direct
NEW
Branded Debit Card
(October 2014)
●Issue card in cooperation with JCB
●Mainly target “Seniors”, “Minors”,
“Housewives” and “customers who do not like credit cards”
Features ①Spot payment ②No joining appraisal ③High convenience ④Withdrawals possible at overseas ATMs
NEW
+44 +30 150 120 66.3 64.6 67.3 (¥Bil.)(Estimate) (Target) (Reference)
(¥Bil.)
Creating New Corporate Value
Strengthening the Channel Strategy
Ⅰ
- Branch Network Strategy
Chiba
Tokyo
Saitama
Ibaraki
●Open new branches in growing areas and blank areas of Chiba prefecture
New Branches, etc.
Chibagin Himawari Lounge Tsudanuma
As of 3 years later ・Open new corporate banking offices and branches
Around 3 branches
Shinagawa Corporate Banking Office (October 2013)
Chibagin Himawari Lounge Tsudanuma (December 2013)
Tsukuba Branch(Relocated and newly opened / January 2014)
Open new branches in blank areas of Chiba prefecture and enhance Tokyo 23 wards as a “Strategic Operating Area”
Consulting Plaza with new functions
Chibagin Consulting Plaza Ichikawa
(April 2014) (P11)
●Integrate functions of Bank, Securities and Insurance, open at night and on holidays
●Relocate staff, integrating, abolishing and changing branch functions
●Promote renewals of branches in response to regional features and branch functions
Osawa Branch (February 2014) Integrated into Futtsu Branch
Motoyawata Branch (April 2014) General branch ⇒ Money Plaza (●1)
Narashino-Sodegaura Branch (April 2014) Branch for individual customers ⇒ Money Plaza (●2)
Asahi Branch (February 2014) (★1) Tokyo Head Office (February 2014) (★2) Yagiri Branch (Scheduled July 2014) (★3) Narita Branch (Scheduled August 2014) (★4)
●1 ●2 ★1 ★2 ★4 ★3
NEW
Omni-channel
Seamless integration between
each channel
Creating New Corporate Value
Strengthening the Channel Strategy
Ⅱ
- Utilizing IT Systems
Develop new business markets and operations, utilizing IT systems
●
Realize “slip-less”, “stamp-less” and “cash-less” operations, utilizing IT systems at branches
●
Enhance direct channels and promote Omni-channel, cooperating with manned branches
Branches
Chibagin Himawari Lounge Tsudanuma Home page
ATM points
Internet banking
Call Center Chibagin Loan Direct Information systems
CRM system EBM system
・Response to globalization
・Develop ATM with new functions
・All services smartphone compatible
・Renewal of investment trust services
・Repayment of card loans
・Strengthened security
・Reduce paperwork, installing self-service machines
・Utilize tablet PCs and electronic writing stands
・Visit reservations via internet
Proposal tool for
investment-type Supportive tool for Supportive tool for
Connection with in-house network, supporting
●
Promote utilization of mobile PCs
Improve business efficiency, utilizing various suggestive tools and in-house information
・Visit reservations
・Online balance inquiries
・Enhanced instructions for loan applications
Internet Branch
(From July 2014
)
・Begin with Tokyo, Chiba, Saitama and Ibaraki ⇒ All over Japan
・Pursue business model focused on unsecured consumer loans
・Enhance internet banking functions, newly introducing “Application for opening accounts” and “Web bankbook”, etc. as a pilot branch
NEW
Expand customers Increase profits Strengthen brand power
0% 10% 20% 30% 40% 13/12 17/3 20/3
Stable funding ratio (USD) 0
100 200 300
10/3 11/3 12/3 13/3 14/3 17/3 20/3
Loans in foreign currency (USD)
Overseas branches Domestic branches
Creating New Corporate Value
Strengthening International Business in Response to Globalization
当行の海外ネットワーク(14.3現在)⇒拠点拡充へ
Further expand overseas network, increase foreign assets mainly in loans
●
Expand overseas branches and banking alliance partners mainly in Asia
●
Increase overseas staff
⇒
Increase loans (¥
5-10Bil. each term)●Increase loans in foreign currencies including overseas infrastructure projects
Increase in loans in foreign currencies
Head Office Shanghai Rep.
Office
Hong Kong Branch Singapore Rep.
Office
New York Branch London Branch
Trainee partner Country, Area
Bangkok Bank Thai Japanese megabank China Japanese megabank Singapore Japanese megabank USA
Expand alliance and trainee partners
Gradual increase in
stable funding ratio Stable funding ratio =Stable funding money*1 /Total assets
*1:Stable funding money =Core foreign currency deposits*2
+Funding more than 1 year *2:Foreign deposits excluding large amount corporate deposits
Alliance partners Timing Country, Area
Bank of Communications Aug. 2008 China Bangkok Bank Aug. 2008 Thai Standard Chartered Bank Jun. 2011 Asia CIMB NIAGA Apr. 2012 Indonesia State Bank of India Mar. 2013 India Metropolitan Bank Trust
Company Jul. 2013 Philippines Bank of East Asia Nov. 2013 HK, Chiba
●Enhance foreign currency funding (Increase “Stable Funding Money”) (Estimate) (Target) (Reference)
(Target) (Reference)
0 50 100 150 200 250 300 350 400 13/3 13/9 13/12 14/3 17/3 20/3
Balance of foreign bonds and stock related investments
Creating New Corporate Value
Enhancing Investment in the Market
Increase profit in Treasury Division, ensuring diversified investment portfolio of securities, etc.
●Difference between deposits / loans : about ¥2Tri. (staying level) ⇒Balance of investment securities : about ¥2Tri. (slight increase)
●In FY13, improved profitability with diversified investment in response
to volatile market interest rates
〔Decreased - the balance of yen bonds; increased - the balance of foreign bonds such as US treasuries, stock related investments such as stock investment trusts, and J-REIT, etc. 〕
●Strengthen total profit and loss control function, ensuring diversified
portfolio management with high efficiency of risk-return
●Also ensure profit opportunities through flexible market operations
Decreasing balance in FY13
*Market price, excluding long-term investment for business relationship
Increasing balance in FY13
Continuing to grow (¥Bil.)
(¥Bil.)
(¥Bil.) (¥Bil.)
(Estimate) (Target) (Reference)
Foreign bonds (left)
●
Strengthening activity for improving customer satisfaction
・Educate employees to improve skills in dealing with customers
・Strengthen alliances with companies in service industries
・Recognize good practice
●
Grasp the true needs of customers
・Enhance customer questionnaires
・Summarize the ideas from branch offices
●
Interactive communications with customers
・Utilize internet and social networking services
●
Service improvement for the elderly and people with a disability
・Employee training by alliance companies for dealing with the elderly and
people with a disability, etc.
・Wheelchairs for all branches (April 2014)
Creating New Corporate Value
Improving Customer Satisfaction
Raise the brand image, improve customer satisfaction
CS Company Guidelines CS Employee Guidelines CS Action Agenda CSAA
● Develop employee hospitality
●“Branding of Services”
⇒Bank retail survey
As of 3 years later As of 6 years later
No.5 or higher
No.3 or higher
Enhancement of Customer Questionnaires
・ Surveys regarding future products
・ Service improvement
Customer Questionnaire
Homepage
Communication Board
Customer Satisfaction Action Agenda CSAA (October 2013)
Business Planning Division
“Customer Satisfaction Promotion Department”
(April 2014)
・Transferred operations regarding CS from Planning Department ・Plan the CS related strategy
・Promote CS activity and support and guide branch offices NEW
Recognized by Chiba Prefecture for good practice in dealing with people with a disability (March 2014)
Customer Satisfaction Promotion Committee (April 2014)
・ Change awareness of employees and strengthen
skills in dealing with customers
・ Grasp issues in branch offices, strengthen
guidance for improvements
・ Information sharing, enhance head office support
functions
Shorten work time by 5%
Further 5% cut
4,300 3,800 4,300 4,80014/3 (Estimate) 17/3 (Target) 20/3 (Reference)
Number of employees (end of the FY)
personnel expenses
Developing a highly professional workforce
・ Nurture the young into a skilled workforce
・ Enhance management skills and business promotion skills
・ Introduce the program to develop a highly professional workforce
Increase the number of staff by 100 to 4,300, strengthen promotion to corporate customers
Number of employees(at the end of the FY) Number of employees(at the end of the FY)
(Including Senior Staff)
Personnel expenses + secondment fees (Number)
Making the most of human resources to bring out the motivation and skills of
staff, such as support for the active participation of women
・ Introduce in-house nurseries (1st half of FY14)
・ Utilize female staff as officers and managers
Farming Experience Program Use of veterans
Creating a corporate culture that generates new ideas
・Increase mid-career recruitment
・Trainees in other industries or foreign countries
・Utilize outside knowledge through wider alliances or cooperation
・Enhance in-house communication and increase efficiency,
utilizing IT systems
425億円 Almost same
Outside liaison personnel
(Based on the ratio of work time)Further Improving Staff Training
FY13 FY19 FY13 FY19
FY13 FY19
Utilizing female staff for outside liaison work
Strengthening the promotion to corporate customers
×1.3
G Course:General Work
C Course:General Work with limited area
Corporate
Customers Housing Loans
Investment-type Financial Products As of 3 years later As of 6 years later
●
Further promoting the TSUBASA project and ensuring the steady implementation of cooperation on the mainframe system
●
Increasing business efficiency and profitability
• Speed-up loan screening process
• Enhance measurement controls / Stringent cost management
• Centralize operations / Shift to a paperless system
• Increase work productivity
●
Strengthening the risk management structure
• Strengthen stress testing and verifying the recovery option / Increasing effectiveness of business continuity management plan
• Respond to financial regulation appropriately
●
Ensuring thorough compliance and protection of customers
• Appropriate solicitation and sales procedures for complex
financial products
• Appropriate information management
The Daishi Bank, Ltd.
Consumer Loan Business Project Team
Scheduled January 2017
Building a Sustainable Management Structure
Cost Management Committee
Corporate Loan Business Project Team
・
Product & Service Working Group
・
Marketing Working Group
・
Channel Working Group
Emergency backup
Chiba Bank Chugoku Bank
The Chugoku Bank, Ltd.
Scheduled January 2016
Scheduled May 2017
TSUBASA Cooperation on Mainframe System
Financial Function Management Group (From February 2014)
TSUBASA Business Planning Sub-Committee
・
Prevention of Money Laundering and
Terrorism Financing Activities
・
Prevention of Financial Crimes
・
Opposition to Antisocial Forces
Increase productivity, strengthen risk management and compliance
Dasihi Bank
Efficient Customer Relationship Management Working Group
3.0
4.5 5.0
3 4 5
Difference of profit between consolidated / non-consolidated
Building a Sustainable Management Structure
Strengthening the Group Management Structure
Strengthen the group management structure, increase profits through providing total financial services
Company name Business Shareholding ratio of the group companies
Sobu Co., Ltd.
Rental and maintenance of the Chiba Bank’s office buildings and welfare
facilities; purchase and sale of supplies and consumer goods
100% 100%
Chibagin Accounting Service Co., Ltd. Accounting, general administration and temporary staff services 100% 100%
Chiba Servicer Co., Ltd. Management and collection of claims 100% 100%
Chibagin Heartful Co., Ltd. Outsourcing operational business 100% 100%
Chibagin Securities Co., Ltd. Securities business 100% 100%
Chibagin Guarantee Co., Ltd. Housing-loan guarantees and fee collection services 88.5% 100%
Chibagin JCB Card Co., Ltd. Credit card and credit guarantee business 70% 100%
Chibagin DC Card Co., Ltd. Credit card and credit guarantee business 95% 100%
Chibagin Leasing Co., Ltd. Leasing 100% 100%
Chibagin Computer Service Co., Ltd. Computer systems development and commissioned computation tasks 67% 100%
Chibagin Capital Co., Ltd. Consulting services, IPO’s, etc. 60% 100%
Chibagin Asset Management Co., Ltd. Consulting for portfolio investments of client financial assets 80% 100%
Chibagin Research Institute, Ltd. Information services and surveys, and consulting 75% 100%
Increase the shareholding ratio of group companies to 100%
Acquire subsidiaries’ profit
・Acquire profit of minority interests
・Gain on negative goodwill
(will be recorded in FY14/1Q)
Enhance group management
・Increase profits by strengthening the business
base of subsidiaries
・Enhance total financial services by strengthening
coordination
・Increase the operational efficiency of subsidiaries
Widening the difference of profit
between consolidated/non-consolidated
FY10 FY11 FY12
¥947Mil. ¥793Mil. ¥1,029Mil.
Affiliates and Subsidiaries Office
(April 2014)NEW
(Before) (After)5 6.1 8 9.8 9.8 9.8 9.7 9.6 10.3 10.2 5 5.8 9.4 10 0 5 10 15 20
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Building a Sustainable Management Structure
Increasing Sustainable Shareholder Value
Flexible approach toward shareholder returns
Annual cash dividend Acquisition of own shares
Keeping stable dividend policy Flexible approach toward acquisition of own shares
Tsukuba Branch Tokyo Head Office Shinagawa Corporate Banking Office
12 12 11 11 11 11 11 9 7 6
Annual cash dividend per share(¥)
¥9Tri. ¥10Tri. 5 10 14/3 (Estimate) 17/3 (Target) 20/3 (Reference) Loan balance
Solid capital base in quality and quantity, Effective use of capital for our development
Growth in loan volume
Enhancing investment
in the market
Strategic branch expansion
13/12 (Actual) 14/3 (Estimate) 17/3 (Target) 20/3 (Reference) 12.77% about13% In 13% range In 13% range
Keep current level of common equity Tier 1 capital ratio
Building a Sustainable Management Structure
Enhancing CSR Management
Contribute to social sustainability in the region through the enhancement of CSR activity
・
Chibagin Heartful Welfare Fund
Connecting social welfare organizations and voluntary groups that are active in Chiba Prefecture
・
Art and culture promotion
・
Venue for financial education
・
Environmental conservation activities such as
“Chibagin Forest” to grow plants which absorb
carbon dioxide
・
Environment related loans
・
Environmentally Responsible Branches
・
Providing Information regarding energy saving
・
Seminar regarding halal certification
・Program for dispatching SME employees overseas
by Chibagin Mirai Foundation
・”Chiba & Ehime Prefectures Food and Tourism Fair” to commemorate starting service on LCC Narita/Matsuyama route
・
Business meeting between farmer and buyer
Nurturing the Future of “People”
Nurturing the Future of “The Environment”
Nurturing the Future of “Business”
Chibagin Heartful Welfare Fund
Chibagin Himawari Gallery
Chibagin Forest
Install solar power systems
Malaysia Halal Seminar
Chiba & Ehime Prefectures Food and Tourism Fair
The Medium Term Management Plan“Best Bank 2020 – 3 years of value creation”
(Reference) Breakdown of Increase of Loans and Gross Business Profits
Pursue business vigorously, aim to achieve growth in loan volume
7.5 8 8.5 9 9.5 10 14/3
(Estimate) (Target)17/3 (Reference)20/3
Breakdown of the loan growth
150 153 149 150 151 152 153 154 155 FY13
(Projection) (Target)FY16
+¥370Bil. +¥45Bil. +¥250Bil. +¥100Bil. +¥46Bil. +¥380Bil. +¥30Bil. +¥300Bil. +¥130Bil. +¥60Bil.
Gross business profits
+3 +1
+0.6
▲2 +0.4
Net interest income
Net fees and commissions income
Trading income Gains (losses) related to bonds Others SMEs Large corporates Housing loans Unsecured consumer loans Foreign denominated loans (¥Bil.) (¥Tri.)