Rakuten Bank, Ltd. · TSE:5838
Rakuten Bank — FY2024 Earnings Presentation
67 slides from Rakuten Bank's earnings presentation, May 12, 2025
Slide 1: FY2024 IR Presentation
FY2024 IR Presentation Rakuten Bank, Ltd. https://www.rakuten-bank.co.jp/corp/english/investors/ *For detailed numerical data, please refer to the data book: https://www.rakuten-bank.co.jp/corp/investors/documents/doc/databook-20250512.xlsx * The figures in the document are truncated below the displ
Slide 2: Contents
Contents 1 Rakuten Bank’s Corporate Profile 2 About Our Medium- to Long-Term Vision and Growth Strategy Overview of FY2024 Financial Results 3 and Full-Year Performance Forecast for FY2025 4 Appendix 2
Slide 3: Rakuten Bank's Corporate Profile
1 Rakuten Bank’s Corporate Profile 3
Slide 4: Corporate Profile
Corporate Profile Name Rakuten Bank, Ltd. In its aim to be the “safe, secure, and most convenient bank,” Rakuten Bank leverages the Rakuten Group’s strengths to develop a host of Established January 14, 2000 distinctive services. Capital JPY32,616mm* Employees 1,076* (consolidated) NBF Shinagawa Tow
Slide 5: Our Philosophy
Our Philosophy Rakuten Bank is aware of our public role and social responsibilities as a bank, and we strive to establish sound efficient business operations based on high self-discipline, to maintain society's unwavering trust and establish value. In addition, as a member of the Rakuten Group, we s
Slide 6: Rakuten Bank's History
Rakuten Bank’s History April 21, 2023 Sep. 2008 Listed on the Entered a capital and business Prime Market of alliance with Rakuten, Inc.*1 the Tokyo Stock October 2010 January 2021 Exchange Became a wholly owned Became the first May 2010 subsidiary of Rakuten, Inc.*1 digital bank*2 in Feb. 2024 Chan
Slide 7: Scale of Operations
Scale of Operations The number of accounts increased as we promoted account acquisition by leveraging the customer base of the Rakuten Group. Deposits also increased by 8.8% YoY. Number of Bank Accounts Total Deposit Balance (Mar. 2025, non-consolidated) (Mar. 2025, non-consolidated) 16.83 mm Ja
Slide 8: Three Business Pillars
Three Business Pillars Services for Individual Customers Services for Corporate Customers and Sole Proprietors Three Features Deposits/ Personal asset loans of Our Corporate management Business Overwhelmingly convenient online services The number of companies Transfers/ Enter- enabled by using us as
Slide 9: About Our Medium- to Long-Term Vision and Growth Strategy
2 About Our Medium- to Long-Term Vision and Growth Strategy 9
Slide 10: Medium- to Long-term Vision
Medium- to Long-term Vision*1 With an eye to the arrival of the zero-cash era, in April 2022 a medium- to long-term vision was formulated, indexed to FY2020, in the aim of becoming a leading FinTech company. Consolidated Consolidated Number of accounts (non-consolidated) ordinary income ordinary p
Slide 11: Progress of Medium- to Long-Term Vision
Progress of Medium- to Long-Term Vision Number of Bank Accounts Ordinary Income CAGR+15.5% （mm, non-consolidated） （JPY bn, consolidated） （Target: >+10%） CAGR +12.4% （Target: >+15%） 25.0 184.5 200.0 16.8 103.3 10.5 FY2020 FY2024 FY2026 FY2020 FY2024 FY2026 Target Target Total Deposit Balance Ordinary
Slide 12: Two Pillars of Earnings (Non-Interest Income/Interest Income)
Two Pillars of Earnings (Non-Interest Income/Interest Income) Growth in Non-Interest Income Growth in Interest Income ・Achieve further growth by acquiring main accounts*1 ・Produce of Group's proprietary assets to have a and through cross-selling balanced and diversified loan portfolio 30.0% of ・Bala
Slide 13: Robust Synergies with Unique Rakuten Ecosystem
Robust Synergies with Unique Rakuten Ecosystem Unique Ecosystem Trusted and Well-known Brand Customer Acquisition 70+ services*1 100mm+ membership*1*2 No.1 web brand in Japan*3 Cross-selling Most Popular*4 Deep & Rich Data Point Program × Technology (in Japan) Origination of Unique 100mm+ membership
Slide 14: Efficient Customer Acquisition through the Rakuten Ecosystem
Efficient Customer Acquisition through the Rakuten Ecosystem 100mm+ Rakuten membership*1 Money Bridge JPY 6.1tn SPU*2 (Point rewards) (Point rewards ・ favorable interest rate) 12.3ｍｍ accounts*5 domestic e-commerce NISA’s Account GMS*3 44.0mm No.1*8 64.6% MAU*4*5 of new customers come via Rakuten Gro
Slide 15: Full-fledged Digital Banking Services
Full-fledged Digital Banking Services Deposits / Asset Management Loans Personal loan Deposits (JPY, foreign currency) Housing loan FX margin trading Education loan Personal financial management Reverse mortgage loan (“Money Support”) Investment property loans Real estate collatera
Slide 16: Our Main Accounts' Growth Momentum…
Non-Interest Interest Income Income Our Main Accounts’*1 Growth Momentum… Key Drivers of Main Account*1 Conversion Convert into Convenience main account*1 Full-fledged services Customer-centric first-class UI/UX Economic Benefit Open Rakuten Rakuten Bank Ecosystem account Rakuten Point rewards
Slide 17: Increases Our Per Account Earnings
Non-Interest Interest Income Income Increases Our Per Account Earnings Average Revenue per Account Average Deposit Balance per Account (Q4 FY2024) (As of Mar. 31, 2025) c. 4x c. 6x *1 Non-main accounts Main accounts *1 Non-main accounts Main accounts *1: Accounts that are used for direct debit or di
Slide 18: Compelling Rakuten Card Securitization Scheme
Non-Interest Interest Income Income Compelling Rakuten Card Securitization Scheme One-stop securitization service Increasing Credit card shopping GTV*3 receivables (Trust) *2 Securitized Senior E-commerce Shopping portion Assets GMS*1 GTV*3 Shopping Funding through Subordinated Portion acceleration
Slide 19: Securitization Business that Utilizes Rakuten Trust
Non-Interest Interest Creating Investment Opportunities on Our Own through the Income Income Securitization Business that Utilizes Rakuten Trust Monetary claims Example of a Scheme (Simplified) Arranger • Rakuten Card trust beneficiary rights • Other credit card receivables • Accounts receivable, et
Slide 20: Data Technology to Enlarge Our Interest Income
Non-Interest Interest Income Income Data Technology to Enlarge Our Interest Income Improve accuracy Advanced Credit Scoring – Expand credit access EC – Drive loan growth Contents Travel – Reduce credit cost Sports Commu- FinTech nity Mobile Optimized Marketing – Accelerate customer acquisition – Enh
Slide 21: Promising Data Monetization Opportunities
Promising Data Monetization Opportunities Our unique advantages enable us to expand the advertising business and improve the marketing efficiency of our banking services Rich Data Targeting Reach Sales of advertising solutions to external parties 16.8mm accounts*1 (KYC completion) Precise ta
Slide 22: Providing a New Customer Experience through BaaS
Providing a New Customer Experience through BaaS*1 Open API*2 Transportation 15.57 mm passengers per day*3 5.92 mm cardholders*4 （Launched May 9,2024） The Ogaki Kyoritsu Bank Entertainment Retail THE NISHI-NIPPON CITY BANK Real Estate/ Housing Other Regional Banks Life Insurance (“Rakuten Bank Dai-i
Slide 23: Providing JRE BANK service jointly with JR East Group
Providing JRE BANK service jointly with JR East Group Realize a new financial service experience by providing benefits that take advantage of the assets (stations, trains, commercial facilities, etc.) and business areas (transportation, distribution and service, real estate, hotels, etc.) of the J
Slide 24: Overview of FY2024 Financial Results and Full-Year Performance Forecast for FY2025
Overview of FY2024 Financial Results 3 and Full-Year Performance Forecast for FY2025 24
Slide 25: FY2024 Financial Results
FY2024 Financial Results Key Financial and Other Data Ordinary Income Ordinary Profit Non-interest Income*1 ROE *2 (FY2024, consolidated) (FY2024, consolidated) Ratio (FY2024, consolidated) (FY2024, consolidated) 184.5 JPY bn 71.5 JPY bn 30.0 % 18.0 % +33.7% YoY +47.8% YoY -7.9pts YoY +3.9pts YoY #
Slide 26: Our Main Accounts' Growth Momentum
Our Main Accounts’*1 Growth Momentum Main accounts*1, which are highly profitable and have large deposit balances per account, increased at a faster pace than the total number of accounts. Number of Total Accounts and Main Accounts*1 （mm） YoY 16.8 Total accounts +10.4% 15.2 13.7 12.3 10.5 11.3 Non
Slide 27: Consolidated Statements of Income
Consolidated Statements of Income The accumulation of risk-diversified investment assets and the increase in interest income due to the Bank of Japan’s policy rate hike drove a significant increase in ordinary profit. Ordinary income, gross operating profit, ordinary profit, and profit attributa
Slide 28: Summary of Consolidated Financial Results
Summary of Consolidated Financial Results Increases in interest income due to the accelerated accumulation of investment assets, as well as further improvements in operational efficiency resulting from business expansion, led to ordinary income, ordinary profit, and net income all exceeding the ea
Slide 29: The Consolidated Forecast for FY2025
The Consolidated Forecast for FY2025 *1 (JPY bn, consolidated) (JPY bn, consolidated) FY2023 FY2024 FY2025 （Actual) (Actual) (Forecast) YoY Change YoY Change Change % Change % Ordinary Income 137.9 184.5 +46.5 +33.7% ⇒ 246.8 +62.3 +33.7% Ordinary Profit 48.3 71.5 +23.1 +47.8% 91.2 +19.6 +27.5% exclu
Slide 30: Interest and Non-Interest Income (Non-Consolidated)
Interest and Non-Interest Income (Non-Consolidated) Under the Bank of Japan’s negative interest rate policy, the ratio of interest income to non-interest income remained roughly 6:4. However, after the BOJ lifted this policy, interest income increased faster than non-interest income, resulting in
Slide 31: Interest Income (Non-Consolidated)
Non-Interest Interest Income Income Interest Income (Non-Consolidated) The expansion of risk-diversified investment assets led to a steady increase in interest on loans and interest on monetary claims bought. The Bank of Japan’s policy rate hike also contributed to the growth in interest income.
Slide 32: Breakdown of Loans and Monetary Claims Bought
Non-Interest Interest Breakdown of Loans and Monetary Claims Bought Income Income Each category of the loans and the monetary claims bought increased in a well-balanced manner. Change from Mar. 31, 2024 （JPY bn, non-consolidated） Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 (Amount) (Rate) Loans 3,76
Slide 33: Expand Investment Assets
Non-Interest Interest Medium- to Long-term Vision Income Income Expand Investment Assets Amounts for each middle-risk asset category expanded steadily, and the total growth rate of middle-risk assets exceeded the total of loans and monetary claims bought. Total for Categories That Include Middle-R
Slide 34: Balance Sheet Summary
Non-Interest Interest Balance Sheet Summary Income Income 80% of our investment assets adopt floating rates, which are mostly linked to TIBOR. The due from the Bank of Japan is also linked to changes in policy rates. (March 31, 2025, non-consolidated) Loans + monetary claims bought, Loans Deposi
Slide 35: Status of Investment in Marketable Securities, etc.
Non-Interest Interest Status of Investment in Marketable Securities, etc.*1 Income Income In order to improve the yield on surplus funds while maintaining liquidity, we gradually and selectively increased loans to the Ministry of Finance and investments in marketable securities, taking interest ra
Slide 36: Non-Interest Income (Non-Consolidated)
Non-Interest Interest Non-Interest Income (Non-Consolidated) Income Income Core non-interest income sources, such as exchange/settlement commissions, direct debit fees, and debit card commissions, continue to grow steadily. (JPY bn, non-consolidated) FY2023 FY2024 Change YoY Breakdown of Non-Inter
Slide 37: Sufficient Capital Adequacy with Disciplined Management
Sufficient Capital Adequacy with Disciplined Management We made active use of our capital to accumulate investment assets. Meanwhile, our capital adequacy ratio remained at a sound level. Increases in Apr. and After the May 2023 implementation of the Capital Adequacy Ratio*1 finalized Basel III
Slide 38: General and Administrative Expenses (Non-Consolidated)
General and Administrative Expenses (Non-Consolidated) Even though general and administrative expenses increased by 10.5% YoY, the business scale expansion boosted our management efficiency, and our G&A expense ratio reached 35.6%, improving 6.9ppt from FY2023. General and Administrative Expenses
Slide 39: Credit Costs (Non-Consolidated)
Credit Costs (Non-Consolidated) Credit cost ratio remained at a low level, while credit costs rose due to an increase in non-guaranteed personal loans. Credit Costs*1 （JPY mm, non-consolidated） Credit costs Reversal of credit costs Credit cost ratio *2 (148) (657) (1,297) (2,102) 0.00% (3,346) 0.0
Slide 40: Roadmap to Achieve Higher ROE
Roadmap to Achieve Higher ROE Further Business Expansion with Unique Rakuten Ecosystem Non-Interest Income Growth ROE*1 • Further growth through main account*2 acquisition and cross-selling 18.0% Interest Income Growth : Enhance Risk/Return Profile • Creation of proprietary assets of the Rakuten
Slide 41: Our Dividend Policy
Our Dividend Policy Our Thoughts on Capital and View on the Capital Adequacy Ratio Prioritize further growth over While accumulating risk assets for further dividends for the near term growth, we will control the capital (%) adequacy ratio at an appropriate level. – Future profits will be allocated
Slide 42: Appendix
4 Appendix 42
Slide 43: Strong Commitment by Experienced Management
Strong Commitment by Experienced Management*1 Mika Matsumoto Kenji Takeuchi Tatsuya Misawa Takuya Mizuno Tamaki Kasuya Masato Tarukado Kosho Ito Executive Manager: General Manager: Executive Manager: Executive Manager: Executive Manager: General Manager: General Manager: • Customer Support • Data In
Slide 44: Disciplined Corporate Governance
Disciplined Corporate Governance*1 3 Outside Directors out of 5 Directors Banking Regulations Hiroshi Mikitani Hiroyuki Nagai Chairman President & CEO Group Arm’s- Synergies Length Eiji Ebinuma Michio Kayano Masatsugu Nagato Outside director Outside director Outside director 3 Outside Auditors out o
Slide 45: Our "SDGs" Initiatives
Our “SDGs” Initiatives Contributing to a healthy and economically prosperous society through “SDGs” “SDGs” × Gender • Percentage of women in managerial “SDGs” × Education positions*1: People • Host seminars for - Reached our initial target of more than 33% by financial education for students end-Mar
Slide 46: Digital Bank Share
Japan – Dawn of Banking Digitalization Japan Cashless Payment Ratio*2 80% (aiming to be the global highest level) Promoted by 4 Japan Post Bank 20% Japanese Government Achieved approximately 40% % target ahead of schedule (originally set for June 2025). Digital Bank 42% Share*1 Mizuho Bank 29% MUFG
Slide 47: Rakuten Bank's Ability to Lead Digitalization
Rakuten Bank’s Ability to Lead Digitalization A corporate mindset of specializing in digital and cashless (1) Impact on earnings improvement No possession of legacy assets (branches/own ATMs) Utilization of state-of-the-art technology Service creation with an in-depth understanding of custom
Slide 48: Banking in a Cashless Era
Banking in a Cashless Era The industry’s widest range of instruments for cashless payment Debit Cards Prepaid Card Direct Payment for code payment Rakuten Bank Card Service Linkage with Rakuten Card via Direct Debit (Rakuten Card Combined with Cash Card) Interest on ordinary deposits is more fav
Slide 49: Our Unique Service Offering through One App
Our Unique Service Offering through One App Full-fledged Digital Banking Services Rakuten Ecosystem Deposits / Asset Management Loans Transfer Payment Entertainment Single integrated app comprehensively covering individuals’ everyday life 49
Slide 50: Rakuten International Commercial Bank in Taiwan
Rakuten International Commercial Bank in Taiwan Company Overview Group Structure Company RAKUTEN INTERNATIONAL COMMERCIAL BANK CO., LTD. Name (Joint Venture) Establishment May 18, 2020 Rakuten Card Co., Ltd. IBF Financial Holdings Co., Ltd. 50% 1% 49% Operation Since January 19, 2021 Electronic bank
Slide 51: Scheme for the Liquidation of Rakuten Card's Credit Card Receivables
Scheme for the Liquidation of Rakuten Card’s Credit Card Non-Interest Income Interest Income Receivables (Trust Beneficiary Rights) Rakuten Card Co., Ltd. is one of Japan’s largest credit card companies, with more than 32 million cards issued.* In general, when the holder of a credit card uses their
Slide 52: Number of Accounts, Deposit Balance (Non-Consolidated)
Number of Accounts, Deposit Balance (Non-Consolidated) Number of Accounts (Non-Consolidated) Deposit Balance (Non-Consolidated) (Millions of accounts) (JPY bn) 18.00 12,000 11,476.3 93.0 16.83 10,540.2 156.9 88.2 915.8 Total 16.00 15.23 10,000 676.1 138.4 9,129.8 13.73 14.00 94.1 638.2 110.1 Foreign
Slide 53: Revision of Interest Rates for Yen Ordinary Deposits
Regarding the Revision of Interest Rates for Yen Ordinary Deposits Effective from March 1, 2025 (Announced on February 4, 2025) ※Before tax Before Revision After Revision (September 1, 2024～) (March 1, 2025～) *1 *2 Interest Rates for Yen Ordinary Deposits (Both Individual and Corporate 0.10% per ann
Slide 54: Improved Spreads on the Card Loans (Personal Loans)
Non-Interest Interest Income Income Improved Spreads on the Card Loans (Personal Loans) Effective yields on Card loans (Personal Loans) comprise two layers. Non-guaranteed balance: yield - ratio of allowance for loan losses = (1) effective yield on non-guaranteed personal loans Balance with extern
Slide 55: Quarterly Consolidated Financial Summary
Quarterly Consolidated Financial Summary FY2023 FY2024 YoY (JPY bn, consolidated) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ordinary income 32.6 33.2 35.1 36.8 40.8 42.8 48.0 52.8 +25.0% +28.7% +36.6% +43.2% Interest income 19.2 20.3 21.8 23.0 26.1 29.2 34.1 38.6 +35.8% +43.5% +56.0% +67.9% Non-interest i
Slide 56: Financial Summary – Consolidated Balance Sheets
Financial Summary – Consolidated Balance Sheets (JPY bn, consolidated) Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Total assets 11,589.5 13,480.4 14,748.6 (incl.) Cash and due from banks 4,050.2 4,791.0 4,241.8 (incl.) Monetary claims bought 2,103.0 2,550.8 2,919.4 (incl.) Marketable securities 780.3
Slide 57: Quarterly Non-consolidated Financial Summary
Quarterly Non-consolidated Financial Summary FY2023 FY2024 YoY (JPY bn, non-consolidated) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ordinary income 31.7 32.3 34.1 35.8 39.5 41.3 46.3 50.8 +24.3% +27.9% +35.7% +42.1% Interest income 18.7 19.8 21.2 22.3 25.3 28.2 32.9 37.2 +34.7% +42.3% +54.7% +66.3% Non-in
Slide 58: Financial Summary – Non-consolidated Balance Sheets
Financial Summary – Non-consolidated Balance Sheets (JPY bn, non-consolidated) Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Total assets 11,694.2 13,527.6 14,705.8 (incl.) Cash and due from banks 4,039.7 4,782.3 4,231.8 (incl.) Monetary claims bought 2,077.0 2,498.8 2,828.6 (incl.) Marketable securitie
Slide 59: Accountholder Demographics
Accountholder Demographics By Age By Region By Occupation Hokkaido Under 20s 4% Company Others 4% executive 4% Tohoku 2% Kyushu, 6% Okinawa Unemployed 60s and 20s 10% 4% over 13% Chugoku, 14% Shikoku Student 7% 5% Housewife 7% 50s Kansai Company employee 21% 17% Kanto, (general) 30s Part-time 45% 23
Slide 60: Implementation of Shareholder Benefit Program
Implementation of Shareholder Benefit Program（Announced on February 26, 2025） Introduced a shareholder benefit program, based on which we also expect an increase in salary receiving accounts, one of the important factors toward achievement of our medium- to long-term vision. Purpose of Shareholder
Slide 61: Organizational Chart of Rakuten Group
Organizational Chart of Rakuten Group*1 Rakuten Group, Inc. (TSE: 4755) Internet Services business 49.26% FinTech 85.01 %*4 FinTech 100% FinTech 100% Mobile 100% business business business business Rakuten Bank, Rakuten Card Rakuten Rakuten Rakuten Mobile, Other domestic Insurance Ltd. 4.72% Co., Lt
Slide 62: The History of the FinTech Segment within the Rakuten Group
The History of the FinTech Segment* Within the Rakuten Group September 2004 April 2013 Rakuten fully acquires Rakuten Group rebrands Aozora Card Co., Ltd. AIRIO Life Insurance as (currently known as Rakuten Life Insurance Co., Rakuten Card Co., Ltd.). Ltd. (Life Insurance) June 2005 Rakuten commence
Slide 63: Cancellation of FinTech Reorganization
Cancellation of FinTech Reorganization- Announcement of Changes as of Sep. 30, 2024 On April 1, 2024, Rakuten Bank and the Rakuten Group signed an MoU to initiate discussions on the reorganization of Rakuten’s entire FinTech business*1 (aiming for the reorganization to take effect in October 2024)
Slide 64: Rakuten Card: Driving the Rakuten FinTech Ecosystem
Rakuten Card: Driving the Rakuten FinTech Ecosystem with a Huge Customer Base CY2025 CY2024 CY2022 CY2023 CY2024 *１：Calculated by Rakuten Group, Inc. based on “Ministry of Economy, Trade and Industry, Specified Service Industry Statistics Survey, Credit Card 64
Slide 65: Rakuten Securities: Achieving High Customer Loyalty through Money Bridge
Rakuten Securities: Achieving High Customer Loyalty through “Money Bridge” How Money Bridge Works Huge Presence and Rapid Growth of Money Bridge (non-consolidated) Transaction 5.7mm accounts (YoY +16.6%) Automatic deposit “Money Bridge” deposit balance JPY 5.9tn (YoY +4.7%) makes up 52.2%*2 of Rakut
Slide 66: Rakuten Payment: Developing Leading Services in Japan
Rakuten Payment :Developing Leading Services in Japan Centered on Payment and Marketing Service Lineup Cashless payment service (QR Code*3/barcode/touch payment/ Rakuten Payment Revenue*2 Suica payment /Online payment,etc.) (JPY bn) Common point service IC type electronic money Online electronic mon
Slide 67: The opinions and forecasts stated in this document reflect the Bank's judgment at the
The opinions and forecasts stated in this document reflect the Bank's judgment at the time these materials were prepared. The Bank does not guarantee the accuracy of the information contained herein. Please note that actual performance and results may differ significantly due to various factors.