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Overview of the 2024 Fiscal Year Financial Results of Nationwide 13 Labor Banks

This article presents a summary of the financial conditions for the Nationwide 13 Labor Banks for the fiscal year 2024 (Reiwa 6), with figures reflecting the total and average values across all banks unless otherwise specified.

Summary

In the fiscal year 2024, the net profit posted a decline of 2.6 billion yen (an 8.15% decrease) compared to the previous year, reaching 29.5 billion yen. Total deposits, including transferable deposits, saw a reduction of 68.8 billion yen (0.29%), resulting in a total of 23.01 trillion yen. However, loans increased by 372.6 billion yen (2.39%), bringing the outstanding loan balance to 15.94 trillion yen. The self-capital ratio improved by 1.12 points to 10.70%.

Financial Performance Overview

Profit and Loss Situation (Table 1)

The income from fund management experienced an increase of 7.7 billion yen (3.12%) due to higher interest from loans, savings, and securities. However, funding costs escalated by 8.2 billion yen (105.68%) because of rising deposit interest rates. Revenue from service transactions also climbed by 4.8 billion yen (27.68%) because of increased loan-related fees. On the contrary, service transaction expenses rose by 3 billion yen (6.13%) reflecting heightened insurance premiums.

In addition, other business income increased by 1 billion yen (7.45%) due to gains from the sale of government bonds. Conversely, costs associated with other business activities rose by 4.9 billion yen (35.32%) due to losses from similar securities. Overall, expenses grew by 2.5 billion yen (1.54%) as a result of increased personnel costs and operational expenses for the cooperative online system. Thus, the operating profit reduced by 5.3 billion yen (12.62%) to 36.9 billion yen.

Deposit Situation (Table 2)

The total balance of deposits decreased by 68.8 billion yen (0.29%), amounting to 23.01 trillion yen. On a brighter note, liquid deposits rose by 134.2 billion yen (1.53%) to reach 8.90 trillion yen, while time deposits including transferable deposits fell by 203.1 billion yen (1.41%) to 14.11 trillion yen.

Loan Situation (Table 2 & Table 4)

The outstanding loan balance rose by 372.6 billion yen (2.39%), totaling 15.94 trillion yen. Despite the growth in loans, the loan-to-deposit ratio saw an increase of 1.82 points to 69.27% due to the decrease in total deposits.

Disclosure of Loaned Amounts under Labor Bank Laws and Financial Revitalization Laws (Table 3)

As of March 2025, the amount subject to disclosure under the Labor Bank Law and Financial Revitalization Law increased by 5.5% to 96.6 billion yen, which includes non-loan credits. This indicates a small rise in non-performing loans and other risk-related debts.

Key Interest Rates (Table 4)

The loan interest rate dipped by 0.01 points to 1.19%, while the deposit interest rate experienced a slight increase of 0.03 points to 0.06%. The interest margin between loans and deposits narrowed by 0.06 points to 0.41%. The total funding margin, which contrasts the earnings from fund management and the cost rate, diminished marginally by 0.01 points to 0.26%.

Conclusion

The financial results of the Nationwide 13 Labor Banks for the fiscal year 2024 portray a mixed picture, with profitability taking a hit amid increasing loan activity. These outcomes reflect the broader trends within Japan's financial landscape, emphasizing the continuous challenges and opportunities within the sector. For further details, please refer to the attached document that contains comprehensive tables and statistics relevant to this overview.

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Note: The financial year is defined as April 1, 2024, to March 31, 2025, with the figures presented on a standalone basis.