Japan Post Bank Co., Ltd. · TSE:7182
Japan Post Bank — FY2019 Earnings Presentation
58 slides from Japan Post Bank's earnings presentation, May 21, 2020
Slide 1: Financial results for fiscal year ended March 2020
BP p56 428 BANK 2020 3 2020 5 21
Slide 2: Agenda
1. 2020 3 P.2 2. 2021 3 P.33 Appendix P.39 ESG JP 2 ATM JP Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 1
Slide 3: 1. Results for fiscal year ended March 2020
1. 2020 3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 2
Slide 4: Results highlights
2 207.5 1.5 2,734 101.2 135.1 1.9 3,791 53.6 4.7 101.1 65.6 3.1 ☛ p9 2,730 2.5 2 1,139,569 28,662 2 848,705 29,390 3,790 1.2 634,023 32,812 9,768 393 33,096 3,811 1,288 221 3 17,419 5,125 2,084 43 1,699 8,246 1 10,202 172 10,940 4,403 ☛ p7 3,036 2,528 1 50 68.5 ☛ p7 2 ☛ p10 1 3 ATM 985 227 1,020 35,
Slide 5: Summary of income statement and balance sheet
2019/3 2020/3 2019/3 2020/3 13,270 13,142 128 2,089,704 2,109,051 19,346 10,161 9,768 393 506,985 516,639 9,653 1,067 1,288 221 4,000 10,400 6,400 2,041 2,084 43 83,681 97,318 13,637 39,907 45,497 5,589 2,194 2,021 173 1,371,352 1,351,984 19,368 122 80 203 52,974 49,617 3,356 10,375 10,202 172 1,976
Slide 6: Profitability indicators: OHR and ROE
2019/3 2020/3 %pt 15.78% 15.55% 0.22 8 8,442 8 9,325 56 335 57 4,072 ROE 2.32% 2.68% 0.35 2,661 2,730 2 11 4,319 10 1,692 ROE 2.97% 3.02% 0.04 2,661 2,730 2 8 9,338 9 159 OHR 78.18% 77.63% 0.55 1 375 1 202 1 3,270 1 3,142 0.67% 0.64% 0.03 0.49% 0.47% 0.02 0.67% 0.64% 0.17% 0.17% 15.80% 15.58% 0.22 8
Slide 7: Market environment: interest rates and LIBOR
2018 3 2020 4 3.6 10 3.2 2.8 2.74 $LIBOR3M 2.56 2.4 2.41 2.23 2.0 1.6 5 1.2 20 0.8 0.70 0.52 0.37 0.4 10 0.34 0.31 0.04 0.08 LIBOR3M 0.03 0.0 0.13 0.18 2 0.13 0.4 18/3 19/3 20/3 20/4 / Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 6
Slide 8: Net income and progress against forecast
4 3,791 2,734 72 101.2 1 50 25 2020 3 19/3 20/3 19/3 12,928 12,900 12,670 258 229 1,067 1,200 1,288 221 88 10,364 10,400 10,195 168 204 3,739 3,750 3,791 51 41 2,661 2,700 2,734 72 34 1 50 50 50 ― ― 70.4% 69.4% 68.5% 101.2% Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 7
Slide 9: Net interest income and yields
2020 3 9,768 0.47% 1.6% 16,000 2019/3 2020/3 1.4% 13,610 14,000 6,379 5,497 881 7,528 6,290 1,237 12,235 1.2% 11,756 12,000 5,233 4,281 951 10,161 1,149 793 355 1.0% 9,768 10,000 0.8% 8,000 2019/3 2020/3 0.66% 0.60% 3,782 4,270 488 0.57% 0.6% 6,000 0.49% 0.47% 7,002 7,894 892 6,987 7,874 887 0.4%
Slide 10: Asset composition of investments
2020 3 53.6 65.6 2019/3 2020/3 % % 1,371,352 66.5 1,351,984 65.1 19,368 11.3 583,565 28.3 536,361 25.8 47,204 5.4 1 162,791 7.9 159,048 7.6 3,742 624,995 30.3 656,575 31.6 31,579 53.6 25.8 220,355 10.6 237,068 11.4 16,713 51.4 2 404,339 19.6 419,010 20.1 14,670 4.9 24.8 2.3 207.5 39,907 1.9 45,497
Slide 11: Risk assets: hedge funds and private equity
2020 3 1 84.9 2 3.3 1 2 100 6 90 84.9 81.9 79.0 3.3 80 2.9 5 1.6 71.6 70 0.7 63.0 4 60 3.3 49.8 50 57.9 60.1 63.4 2.9 0.3 3 0.1 0.2 HF 38.9 52.3 40 45.4 33.0 1.0 32.9 1.1 30 2 1.6 22.7 15.7 0.7 20 2.6 2.9 2.4 1.6 1.6 2.3 2.3 2.3 0.9 4.0 2.5 2.2 2.2 2.2 2.3 1 3.1 2.8 0.7 1.7 10 6.0 5.9 6.2 6.8 7.
Slide 12: Credit ratings of securities
85% A 95% BBB 0.27% 0.18% BB 1.20% 0.04% 1.83% 0.09% BB 0.02% 0.29% 1.35% 5.44% 0.16% BBB 10.69% 9.81% 21.69% 1.15% A 19.23% 10.02% 11.95% 65.18% 66.98% 0.69% A 84.73% 2020 3 199 1 2 3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 11
Slide 13: Portfolio review
114 3 85 3 2019/3 2020/3 2019/3 2020/3 6 5 1 1 55 57 2 8 7 1 3 60 63 3 38 40 2 27 22 4 1 1 1 2 35 34 1 0 1 0 0 - 0 1 2 2 0 2 2,3 2 2 0 3 3 3 0 2007/10/1 2016/3 2020/3 ポートフォリオの 3 3.1% 1.2% 3 2.3% 1.8% 2.4% 3.6% 3 5.1% 1.7% 4.7% 0.1% 0.2% 2.8% 2.8% 2 2.9% 25.8% 40.1% 4 22.1% 31.6% 1 2 2 88.0% 26.6% 30
Slide 14: Interest rate sensitivity and basis point value
2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 BP SP 194.2 5,599 196.5 4,804 197.5 4,330 198.9 4,384 198.4 3,635 197.4 3,767 151.7 947 141.7 356 131.5 2,433 124.6 3,800 117.9 4,203 114.0 4,805 BP BP - 2,224 - 2,504 - 3,996 - 5,718 - 7,215 - 7,743 BP - 3,172 - 2,147 - 1,563 - 1,918 - 3,011 - 2,937 42.4 4,
Slide 15: Fee and commission business and ATM
ATM 2019/3 2020/3 2019 4 2018 10 1,067 1,288 +221 612 794 +182 Biz 107 119 +12 2019 4 ATM 145 190 +45 222 217 4 ATM 8 5 3 2017 1 ATM 15 13 1 ATM 46 47 +0 12 11 1 3 7 +3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 14
Slide 16: Business KPIs
10,000 8,910 8,000 7,378 6,914 6,000 4,000 2,000 0 18/3 19/3 20/3 24,000 22,859 23,017 22,000 20,000 18,000 16,423 16,000 14,000 12,000 0 10,000 18/3 19/3 20/3 JP 1,090 2,593 2,448 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 15
Slide 17: Cashless payment and QR initiatives
Pay PR ― QR 2019 5 8 “ ” 10 60 2020 3 31 JCB Smart Code Pay SNS GMO Pay 2020 3 31 2020 3 31 Pay Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 16
Slide 18: General and administrative expenses
2020 3 170 1 183 2019/3 2020/3 11,000 10,640 1,242 1,206 35 10,540 10,428 10,353 1,016 986 29 10,183 10,000 8,416 8,443 26 6,006 3,697 2,309 2,378 2,378 9,000 596 594 1 695 533 161 10,353 10,183 170 8,000 0 2015 16/3 2016 17/3 2017 18/3 2018 19/3 2019 20/3 Copyright © 2020 JAPAN POST BANK CO., LTD
Slide 19: Employees and branch network
2020 4 1 2,000 1 9,000 8,619 500 8,246 2 7,881 450 8,000 7,484 1 6,940 400 17/4/1→20/4/1 7,000 3 6,651 346 350 1,700 358 345 6,000 300 287 300 2,300 5,000 241 5,266 5,234 5,178 250 4,946 4,728 4,731 4 600 4,000 200 15/4/1 16/4/1 17/4/1 18/4/1 19/4/1 20/4/1 1 18,878 18,618 18,382 17,937 17,161 16
Slide 20: Deposits
2020 3 183.0 183.0 2019/3 2020/3 180.9 179.4 179.8 180 79.9 87.5 7.6 177.8 16.1 7.7 8.4 63.4 79.3 15.9 170 0.4 0.5 0.1 100.9 95.2 5.6 7.0 5.2 1.8 160 93.8 90.0 3.7 0.1 0.1 0.0 180.9 183.0 2.0 1500 2015 16/3 2016 17/3 2017 18/3 2018 19/3 2019 20/3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Righ
Slide 21: Securities and unrealized gains
2020 3 1,020 2019/3 2020/3 272,425 7,931 241,707 4,908 2019/3 2020/3 1,141,934 35,172 1,159,361 3,706 1,102,419 21,285 1,113,864 7,515 333,406 11,676 325,979 7,942 220,030 6,377 237,068 4,294 404,339 1,849 419,010 20,404 144,642 1,382 131,806 651 2,664 3,083 39,514 11,222 45,497 8,138 21,417 11,06
Slide 22: Credit spreads of IG and HY
20 2 3 2020 3 2019 12 3.6 3 4 1.3 IG HY IG : Investment Grade , HY : High Yield (bp) 07 3 2,000 2019 12 2020 3 1,800 19 12 35,421 1,020 1,600 (bp) 20 3 1,400 19 12 3.6 HY 1,200 1,100 1,200 1,000 1,000 880 800 800 744 2020 4 600 600 400 336 373 1.3 400 IG 272 200 200 93 202 20 4 20 3 1.4 0 0 20 2
Slide 23: Capital adequacy ratio
2020 3 15.55% % 2019/3 2020/3 50 88,442 89,325 883 560,335 574,072 13,737 40 533,340 547,750 14,410 15.78% 15.55% 0.22%pt 30 26.38 22.22 2019/3 2020/3 20 17.42 15.78 15.55 88,533 89,420 887 560,045 573,908 13,863 10 533,051 547,588 14,537 15.80% 15.58% 0.22%pt 0 2015 16/3 2016 17/3 2017 18/3 2018
Slide 24: Supplementary financial data
Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 23
Slide 25: Financial statements
2019/3 2020/3 2019/3 2020/3 1,327,033 1,314,210 12,823 4,107 450 3,656 1,016,126 976,821 39,304 3,556 450 3,106 106,761 128,891 22,129 550 0 550 204,145 208,497 4,351 370,192 378,626 8,434 219,448 202,139 17,308 99,417 101,266 1,848 12,241 8,097 20,339 4,596 4,315 280 1,037,537 1,020,253 17,283 104,
Slide 26: Average balances and yields
2019/3 2020/3 2019/3 2020/3 50,698,549 51,663,901 965,352 180,999,134 183,004,733 2,005,599 400,000 1,040,000 640,000 11,569,371 14,855,624 3,286,253 8,368,139 9,731,897 1,363,758 2,473,457 2,219,384 254,073 112,491 112,491 28,029 28,029 295,679 315,812 20,133 3,900 10,100 6,200 2 31 29 628 511 117
Slide 27: Average balances and yields by account
% 2019/3 2020/3 194,710,207 752,825 0.38 198,026,308 629,096 0.31 0.06 6,090,997 12,072 0.19 4,947,212 11,056 0.22 0.02 77,703,674 615,038 0.79 71,842,673 492,509 0.68 0.10 49,543,054 30,905 0.06 52,928,370 28,874 0.05 0.00 187,129,472 114,900 0.06 190,695,746 79,358 0.04 0.01 181,227,650 80,834 0.0
Slide 28: Interest margin
% 2019/3 2020/3 % 200,414,539 1,357,985 0.67 203,590,095 1,318,014 0.64 0.03 6,095,997 12,093 0.19 4,958,081 11,113 0.22 0.02 136,708,838 1,313,813 0.96 135,082,556 1,279,986 0.94 0.01 49,551,855 31,069 0.06 52,929,633 28,904 0.05 0.00 192,132,309 341,859 0.17 196,217,319 341,193 0.17 0.00 181,227,6
Slide 29: Interest-earning assets and liabilities
2019/3 2020/3 25,015,921 755,550 21,038,148 475,518 3,977,772 280,032 533,474 4,001 1,146,788 1,665 613,313 2,335 1,660,749 28,626 1,985,771 13,654 325,022 14,972 32,433 5,014 32,433 5,014 32,433 5,014 32,433 5,014 27,242,577 793,192 24,170,708 490,838 3,071,869 302,354 2019/3 2020/3 96,909 5,124 5
Slide 30: Interest income and expense
2019/3 2020/3 3,951,489 1,122,266 4,549,736 813,852 598,246 308,413 2,141,784 1,106,458 1,859,682 816,565 282,101 289,892 1,195,685 17,468 1,419,008 893 223,323 18,361 1 2 2020 3 9,212 2019 3 3,573 2019/3 2020/3 7,839,145 122,376 8,913,409 458,664 1,074,264 336,287 6,527,044 32,497 7,426,920 14,041
Slide 31: Loans and securities composition
% 2019/3 2020/3 124,201 11.99 120,653 11.84 3,548 101,619 9.81 98,694 9.69 2,925 22,582 2.18 21,959 2.15 622 841,648 81.28 844,334 82.91 2,685 600,661 58.01 369,716 36.30 230,944 1 237,820 23.35 237,820 2 1,619 0.15 510 0.05 1,108 59,654 5.76 59,486 5.84 167 13,332 1.28 11,956 1.17 1,375 65,031 6.28
Slide 32: Capital adequacy details
2019/3 2020/3 8,879,601 8,965,233 85,631 35,388 32,685 2,702 8,844,213 8,932,547 88,334 56,033,562 57,407,276 1,373,714 53,334,010 54,775,080 1,441,069 8 2,699,551 2,632,196 67,355 8 15.78% 15.55% 0.22%pt 2019/3 2020/3 8,888,716 8,974,876 86,159 35,398 32,827 2,571 8,853,318 8,942,048 88,730 56,004,
Slide 33: Securities by rating
2019/3 2020/3 1,305,786 40,178 AAA 1,359,705 28,113 AAA 165,503 11 AAA 173,975 205 AAA 1,247 52 AAA 1,018 37 AAA 1,472,537 40,241 1,534,699 27,945 99,786 11,624 AAA 38,546 9,390 AAA 1,178,783 6,083 AAA 1,767,354 121,935 AAA 1,278,569 17,708 1,805,900 131,326 2,751,107 22,533 3,340,600 103,380 Copyri
Slide 34: 2. Forecast for fiscal year ending March 2021
2. 2021 3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 33
Slide 35: Market assumptions
2020 3 (%) (bp) 0.6 500 0.5 IG 0.4 400 0.33(20/3 ) 0.3 0.31(20/4 ) 300 0.2 272(20/3 ) 20Y 0.02(20/3 ) 0.1 200 0.0 202(20/4 ) 0.03(20/4 ) 0.1 100 0.2 IG 10Y 0.3 0 19/3 20/3 21/3 19/3 20/3 21/3 (%) (bp) 3.0 1,200 HY 2.5 1,000 2.0 880(20/3 ) 800 1.5 1.49 744(20/4 ) (20/3 ) 600 5Y 1.0 0.58(20/4 ) 40
Slide 36: Asset management plan and ALM
ALM 1 2 90 100 6 90 84.9 4 5 81.9 79.0 3.3 5 80 2.9 1.6 71.6 70 0.7 63.0 4 60 3.3 49.8 2.9 0.3 50 57.9 60.1 63.4 3 0.1 0.2 HF 38.9 52.3 40 45.4 1.0 33.0 1.1 32.9 2 30 1.6 22.7 0.7 15.7 20 2.6 2.9 2.4 0.9 1.6 1.6 2.3 2.3 2.3 1 4.0 2.5 2.2 2.2 2.2 2.3 0.7 1.7 3.1 2.8 PE 10 6.0 5.9 6.2 6.8 7.7 8.0
Slide 37: Fiscal 2021 forecast: fees and expenses
2021 3 1,300 2021 3 10,000 19 10 1,400 11,000 1,288 1,200 1,067 10,350 10,250 1,000 964 10,000 9,950 800 1,254 1,300 18/3 600 30 10,050 10,000 (18/3 9,000 300 ) 400 200 0 8,000 0 18/3 19/3 20/3 21/3 21/3 18/3 19/3 20/3 21/3 21/3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 3
Slide 38: Fiscal 2021 net income forecast and dividends
2021 3 2,750 2,000 2021 3 1 2021 3 1 2020/3 2021/3 2020/3 2021/3 50 12,670 11,800 25 25 1,874 a 1,288 1,300 68.5% a 2020 3 2 2021 3 10,195 10,400 1 2021 3 3,791 2,750 1 50 1 2,734 2,000 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 37
Slide 39: Net income forecast change versus prior year
2020 3 2020 3 2021 3 20/3 vs 21/3 4,000 20 3 605 3,791 3,900 2 21 3 2,100 2 3,000 1 2,734 2,750 2,800 10 200 2,000 1,500 630 2,000 870 1,000 1 0 20/3 21/3 21/3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 38
Slide 40: Appendix
Appendix Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 39
Slide 41: Business continuity and ATM initiatives
BCP ATM ATM Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 40
Slide 42: ESG initiatives
ESG 19/3 20/3 2020 4 ESG 2019.5 TCFD 2019.4 E S G C S R ESG 2020.4 2018.12 TCFD ESG 2019.5 SRI 2019 12 MSCI WIN Euronext Vigeo Eiris World 120 Index 2019 2 THE INCLUSION OF JAPAN POST BANK CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO
Slide 43: ESG
ESG SDGs Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 42
Slide 44: ESG: TCFD and climate
ESG 2019 4 TCFD TCFD ( ) TCFD Task Force on Climate-related Financial Disclosures 2019 5 TCFD ESG TCFD ( 2019 9 3,355 ) ( 1,300 ) ESG 2020 2009 25% Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 43
Slide 45: ESG: social and employees
ESG 1 2021 4 1 14% P47 149 16.6% 150 30 28 18% 16% 15.3% 14.7% 13.8% 13.8% 109 14.4% 14% 15% 12.9% 120 91 12.7% 10 18 12% 10.9% 11.5% 12% 90 74 20 8.9% 65 71 12 6 9% 63 67 8% 60 49 10 6% 39 9 4% 30 3 3% 3 0% 0% 0 0 15/4/1 16/4/1 17/4/1 18/4/1 19/4/1 20/4/1 15/7/1 16/7/1 17/7/1 18/7/1 19/
Slide 46: ESG: governance
ESG G 12 9 2020 5 1 2020 5 1 12 98.01% 2019 6 2020 5 21 2020 5 1 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 45
Slide 47: ESG: governance
ESG G 9 3 NPO MS&AD 10 2 2020 5 1 2 25 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 46
Slide 48: ESG investment and loans
2016 7 LP 2020 3 31 28 2020 3 31 30 28 10 20 18 12 6 3 10 9 3 10 18 0 3 25 17/3 18/3 19/3 20/3 6 100 91 26 11 4 22 13 16 24 68 23 9 5 14 8 27 48 20 50 7 12 11 68 1 19 48 2 15 17 19 20 21 23 37 19 28 0 17/3 18/3 19/3 20/3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 47
Slide 49: Investment list
2020 3 31 2017/3 2018/3 2019/3 2020/3 2016/ 7 117 2018/ 8 12.5 2016/11 25 2018/ 8 20 2016/11 2 1 2018/10 30 2017/ 4 50 2 2018/12 34 1 2017/ 6 6 2019/ 3 54 2017/ 8 5 2019/ 3 3 2019/ 6 30 2 2017/10 23 1 2019/ 7 7.1 1 2017/11 20 1 ㉑ 2019/ 7 40 2017/12 20 2 ㉒ 2019/ 7 15.2 2018/ 3 5 ㉓ 2019/ 9 212 2018/ 3
Slide 50: Private equity fund initiatives
JP PE JP PE GP JP GP GP LP LP PE 2020 3 JPIC 30 900 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 49
Slide 51: Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved.
Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 50
Slide 52: ATM initiatives
ATM ATM No.1 ATM ATM Win-Win ATM ATM ATM No.1 ATM Win-Win ATM No.1 ATM ATM 32,000 2020 3 1,400 2020 3 ATM ATM 16 ATM ATM ATM ATM 5,251 4,252 2,849 2,096 1,406 18/3 18/9 19/3 19/9 20/3 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 51
Slide 53: Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved.
20/3 22/3 24/3 21/3 20/3 19/3 20/3 1 1 2 2 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 52
Slide 54: Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved.
2016 5 • • • • Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 53
Slide 55: Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved.
2016 4 2020 3 • • • 3 1/3 • 3 3 1 Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 54
Slide 56: Historical financial data
2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 15,687 16,347 14,520 14,102 14,623 13,270 13,142 1 14,702 15,407 13,610 12,235 11,756 10,161 9,768 926 892 911 866 964 1,067 1,288 2 10,960 11,147 10,661 10,561 10,450 10,375 10,202 0 0 0 4,726 5,199 3,858 3,540 4,173 2,894 2,939 924 494 961 879 823 8
Slide 57: Bloomberg Barclays index notice
BLOOMBERG Bloomberg Finance L.P. BARCLAYS Barclays Bank Plc BLOOMBERG BARCLAYS INDICES Barclays Capital Inc. ©2020 Bloomberg Finance L.P. All rights reserved. Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 56
Slide 58: Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved.
Copyright © 2020 JAPAN POST BANK CO., LTD. All Rights Reserved. 57