Management Strategy
Mid-Term Management Plan “Road to 10”
Hokuhoku Financial Group Inc. made Mid-term Management Plan “Road to 10”, recognizing 3 years from Apr 2010 to Mar 2013 as a challenging term for establishing foundation of sustainable growth.
The company will keep on 3 key management policies, “Strengthening Market Capabilities”, “Increasing Management Efficiency” and “Cementing Customer Loyalty” and implement proper measures after full repayment of public funds to achieve JPY 10 trillion in deposit.
| Title | Road to 10 |
|---|---|
| Period | 3 Years (April 2010 ~ March 2013) |
| Position |
Renew Challenge to Foster Sustainable Growth
~ Achieve JPY10 Trillion in deposit ~ |
|
Target Corporate Profile |
Close and Reliable Financial Group for Local Customers |
|
Main |
|
Basic Policies in Management Plan
| Strengthening Market Capabilities | Increasing Management Efficiency | Cementing customer loyalty | ||
|
Expansion of earnings base Client-focused consulting services Expansion of investment in securities |
Smooth renewal and strategic utilization of Joint Banking System Pursuit of further synergy Increasing sales force |
Improvement in quality of capital Steady increase of common dividends |
We strengthen marketing capabilities through “Triple R” strategies, “Retail (Close to customers)”, “Relation (Reliable Service)” and “Region (Contribution to local community)”
In “Retail” strategy, we concentrate on expansion of customer base and diversification of service to them. We enhance segment marketing, broaden business to SMEs (e.g. loan guaranteed by Credit Guarantee Corporations), expand housing loan, promote financial facilitation and increase salary deposit and pension transfer accounts.
In “Relation” strategy, our focus is on providing the best solutions to customers. We aggressively offer advisory and consultation in line with client’s life cycle. We also offer business support by capitalizing our overseas network, a top-level among regional banks.
In “Region” strategy, we closely contribute to local community as a regional financial group, in support of local growing industries (e.g. agriculture, medicine and environment), collaboration with academic institutions and local governments and introduction of new business to our region and CSR initiatives.
We start joint use of banking system with Bank of Yokohama from May 2011. Besides sufficiently preparing for the smooth migration, we pursue further synergy as an entire group by integration of business process, shared back office, joint development of software, cutback on future expense, reallocation of human resources and increase in sales force.
We establish efficient management and secure stable accumulation of earnings to improve quality of capital by above strategies. We strive to steadily increase common dividends with consideration of earnings.
Target Figures
|
＜Concept＞
|
|
Deposits (Avg Balance) |
JPY 9,550.0 Bn | OHR | 58% |
|
Loans (Avg Balance) |
JPY 7,200.0Bn |
ROA （Core net business profit basis) |
0.68% |
| Core net business profit | JPY 70.0 Bn |
ROE* （Core net income basis) |
above 6％ |
| Net income* | JPY 25.5 Bn | NPL Ratio | around 3％ |
|
Capital Adequacy Ratio* （Tier 1 Ratio*） |
Above 11.5％ （Above 7.5％） |
* FG consolidated
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