Japan Post Bank Co., Ltd. · TSE:7182

Japan Post Bank — FY2016 Earnings Presentation

42 slides from Japan Post Bank's earnings presentation, May 18, 2017

  1. Slide 1: Japan Post Bank FY March 2017 results briefing

    BP p56 428 BANK 2017 3 2017 5 18

  2. Slide 2: Copyright © © 2017 2017 JAPAN JAPAN POST

    Copyright©©2017 Copyright 2017JAPAN JAPANPOST POSTBANK BANKCO., CO.,LTD. LTD.AllAllRights RightsReserved. Reserved. 1

  3. Slide 3: Agenda

    1. 2017 3 2. 2018 3 2017 3 2018 3 3. Appendix BP SP TP LP GP GP GP Copyright©©2017 Copyright 2017JAPAN JAPANPOST POSTBANK BANKCO., CO.,LTD. LTD.AllAllRights RightsReserved. Reserved. 2

  4. Slide 4: FY2016 results summary

    1 2017 3 • 3.9% 104.0% • 2,117 Copyright©©2017 Copyright 2017JAPAN JAPANPOST POSTBANK BANKCO., CO.,LTD. LTD.AllAllRights RightsReserved. Reserved. 3

  5. Slide 5: Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

    ☛ ☛ ☛ ☛ ☛ ☛ ☛ ☛ Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 4

  6. Slide 6: Liability-driven portfolio and excess-return portfolio

    129 7 Liability-driven portfolio 2017/3 2016/3 1 55 +7 48  ALM  9 38 13 52  35 1 36 1 0 1 1. 70 9 Excess-return portfolio 2017/3 2016/3 6 +1 6  1 8 +1 7 1,3 52 +7 45  ( ) (32 ) (+7 ) (26 )  0 0 0 ( ) 2,3 3 +0 2 1 0 1 1 +1 1. 2. 3. Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

  7. Slide 7: Portfolio and risk status

    1 BP,SP 2 2014 12 2016 12 100% 0.8% 9 14 15 90% 16 19 0.7% 24 31 10 10 IFR 14 12 80% 35 0.6% SP 0.5% 70% 0.4% 60% BP 0.3% 50% 0.2% 2 10 IFR 16 12 91 2 IFR 14 12 40% 86 85 84 81 0.1% 76 69 65 0.0% 30% 0.1% 20% 0.2% 2 IFR 16 12 10% 0.3% 0% 0.4% 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 14/12 15/3 15/6 1

  8. Slide 8: FY2018/3 outlook

    2 2018 3 • 2018 3 2017 3 12.0%  2016 12  114 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 7

  9. Slide 9: Net income and ordinary profit trends

    2017 3 BP 15/3 2015/3 ®2016/3 2016/3 ® 2017/3 5,694 18/3 16/3 16/3 4,900 522 4,819 4,819 17/3 1,933 SP SP 4,420 516 108 2,073 1,611 BP 18 483 45 BP p28 BP SP BP BP SP BP Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 8

  10. Slide 10: Forecast, dividend and capital

    2018 3 2018 3 4,900 3,500 2018 3 1 50 25 2018 3 1 2018/3 2017/3 60 50 50 50 4,900 4,420 40 25 25 3,500 3,122 30 20 1 2 3 10 25 25 14,500 14,000 14,400 0 5,200 2017.3 2016 2018.3 2017 [61 ] 6,800 [70 ] 1 2017 3 2 2017 3 30% 6% SP 4.81 % 4.74 % 22.22% 4.11 % 3.95 % 9,300 BP 20% 4% [136 ] 7,100 12.89%

  11. Slide 11: Initiatives for FY2018/3

    3 2018 3    Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 10

  12. Slide 12: NISA and CDS initiatives

    NISA なる の CDS 2017 5 18 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

  13. Slide 13: Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

    6,073 4,682 1,363 146 18 589 806 1,244 2016.9 2016.12 2017.3 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

  14. Slide 14: ATM and Visa mijica, FinTech

    1. 3. Visa mijica 2. ATM 4. FinTech ATM 3,500 2017 1 16 1 2 2017 1 ATM 2 ATM Copyright©©2017 Copyright 2017JAPAN JAPANPOST POSTBANK BANKCO., CO.,LTD. LTD.AllAllRights RightsReserved. Reserved. 13

  15. Slide 15: Appendix

    Appendix 2015 3 2018 3 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 14

  16. Slide 16: Summary of financial results

    2017/3 2016/3 2017/3 2016/3 14,102 14,520 418 2,095,688 2,070,560 25,127 12,235 13,610 1,375 512,819 458,950 53,868 866 911 45 4,700 9,788 5,088 1,000 1 1,002 87,189 79,232 7,956 993 14 1,008 38,179 35,611 2,567 24 18 43 1,387,924 1,440,768 52,843 1 10,561 10,661 100 40,641 25,420 15,220 0 0 1,977,8

  17. Slide 17: Medium-term plan 2015-2018

    2015 3 2018 3 BP SP 2015/3 ® 2018/3 15/3 15/3 BP 5,694 5,400 18/3 18/3 4,800 4,900 SP SP 500 640 5,780 4,000 3,000 4,360 100 BP 70 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 16

  18. Slide 18: Profit and capital ratio details

    2017/3 (%pt) 2016/3 22.22 4.16 26.38 8 6,169 8 4,993 38 7,798 32 2,185 11.16 4.12 7.03 9,618 5,980 2,380 1,788 6,544 3,662 8 6,169 8 4,993 1 4.11 0.00 4.10 8 6,169 8 4,993 209 5,688 207 560 2.68 0.12 2.80 3,122 3,250 11 6,440 11 5,691 74.89 1.46 73.42 1 561 1 661 1 4,102 1 4,520 0.78 0.08 0.86 0.60

  19. Slide 19: Balance sheet

    2017/3 2016/3 2017/3 2016/3 51,281,921 45,895,068 5,386,853 179,434,686 177,871,986 1,562,699 470,000 978,837 508,837 45,436 22,536 22,900 8,718,905 7,923,229 795,676 960,937 554,522 406,415 252,214 178,509 73,705 13,694,294 13,123,558 570,736 9 187 178 40,324 40,324 3,817,908 3,561,110 256,797 407

  20. Slide 20: Income statement

    2017/3 2016/3 2017/3 2016/3 1,410,256 1,452,082 41,825 1,488 1,109 379 1,223,546 1,361,065 137,519 529 1,103 573 86,619 91,139 4,520 958 5 953 100,091 122 100,213 440,596 480,888 40,292 99,395 1,471 100,867 133,287 152,528 19,241 2,454 1,846 4,300 4,954 3,291 8,245 1,056,168 1,066,184 10,015 128,332

  21. Slide 21: Net interest income and yields

    2017 3 1 2,235 0.60% 1.8% 18,000 2017/3 2016/3 1.6% 16,000 8,040 9,705 1,665 15,321 15,407 14,702 10,465 12,486 2,020 1.4% 13,610 14,000 7,933 9,666 1,733 12,235 1.2% 12,000 2,425 2,780 355 1.0% 10,000 0.82% 2017/3 2016/3 0.73% 0.76% 0.8% 8,000 4,195 3,904 290 0.66% 0.60% 0.6% 6,000 5,966 5,459 506

  22. Slide 22: Yields and funding costs

    % 2017/3 2016/3 193,991,919 1,046,541 0.53 192,120,047 1,248,620 0.64 0.11 3,081,133 17,741 0.57 2,681,909 25,091 0.93 0.35 92,901,349 926,690 0.99 109,010,368 1,116,543 1.02 0.02 8,318,619 1,471 0.01 8,586,952 7,958 0.09 0.07 47,723,014 24,916 0.05 39,310,383 35,624 0.09 0.03 184,991,156 242,503 0.

  23. Slide 23: Interest margins

    % 2017/3 2016/3 200,321,045 1,567,512 0.78 200,500,267 1,731,217 0.86 0.08 3,083,285 17,748 0.57 2,684,524 25,103 0.93 0.35 141,000,661 1,522,075 1.07 149,083,133 1,657,623 1.11 0.03 8,318,619 1,471 0.01 8,586,952 7,958 0.09 0.07 47,804,568 25,885 0.05 40,087,966 40,329 0.10 0.04 190,443,114 343,966

  24. Slide 24: Securities and assets composition

    2017 3 68.8 52.9 2017/3 2016/3 % % 1,387,924 66.9 1,440,768 70.3 52,843 9.3 4.4% 688,049 33.2 822,556 40.1 134,506 1 170,704 8.2 164,256 8.0 6,448 529,170 25.5 453,955 22.1 75,214 201,434 9.7 198,295 9.6 3,139 51.2 24.7% 68.8 327,267 15.7 255,209 12.4 72,057 33.2% 4.0 1.9% 207.1 38,179 1.8 35,611 1.

  25. Slide 25: Securities holdings detail

    2017 3 4 3,981 2017/3 2016/3 383,169 14,565 520,525 22,083 2017/3 2016/3 1,044,701 45,661 958,475 47,917 1,006,669 32,821 922,863 38,724 334,875 13,207 343,582 17,447 200,785 13,351 197,327 19,678 326,042 4,350 255,209 1,280 144,965 1,911 126,744 2,879 1,853 353 38,032 10,986 35,611 8,838 20,792 10,

  26. Slide 26: Valuation gains and losses

    2017/3 2016/3 35,317,430 1,373,826 47,897,398 2,063,032 12,579,968 689,205 44,618 115 341,147 3,954 296,528 3,839 2,889,963 70,626 3,717,263 110,702 827,299 40,076 64,911 11,981 96,744 30,670 31,833 18,688 64,911 11,981 96,744 30,670 31,833 18,688 38,316,923 1,456,549 52,052,553 2,208,359 13,735,630

  27. Slide 27: Securities gains and maturities

    2017/3 2016/3 3,803,267 1,098,661 3,561,110 883,889 242,156 214,772 2,079,290 1,058,661 1,878,626 829,857 200,664 228,804 0 0 0 0 0 0 1,274,178 40,000 1,293,411 54,032 19,232 14,031 1 1 2 3 2017 3 3,734 2016 3 1,588 2017/3 2016/3 4,498,510 195,410 3,987,422 409,837 511,088 214,427 2,971,988 37,723 3

  28. Slide 28: Credit ratings of holdings

    9 A 95% BBB BB B BBB 1.25% 3.57% 6.02% 0.45% BB B 0.13% A 1.38% 0.66% 0.57% 0.04% 11.25% 0.17% 1.39% 0.76% 0.09% 1.39% 13.47% 8.37% 12.10% 12.65% A 72.47% 75.36% 90.39% 2017 3 194 1 1 1 2 3 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 27

  29. Slide 29: Portfolio yields and duration

    2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 BP SP 184.2 5,197 184.2 5,734 187.4 5,921 190.5 5,731 194.2 5,599 196.5 4,804 197.5 4,330 162.8 4,444 157.4 4,387 158.0 3,421 156.7 2,897 151.7 947 141.7 356 131.5 2,433 BP BP - 658 - 576 - 602 - 1,203 - 2,224 - 2,504 - 3,996 BP - 5,103 - 4,964 - 4,02

  30. Slide 30: Deposits

    2017 3 179.4 180 179.4 177.7 177.8 2017/3 2016/3 176.0 176.6 67.9 63.8 4.1 13.0 13.8 0.8 170 54.5 49.5 4.9 0.3 0.3 0.0 111.2 113.8 2.5 160 10.0 11.4 1.3 101.2 102.4 1.1 0.1 0.1 0.0 179.4 177.8 1.5 1500 2012 2013.3 2013 2014.3 2014 2015.3 2015 2016.3 2016 2017.3 Copyright © 2017 JAPAN POST BANK CO.,

  31. Slide 31: ATM and account services

    2017/3 2016/3 866 911 45 591 592 1  ATM 1 2017 1 3,500 93 84 9 ATM 72 75 2 18 25 7 105 130 25  69 72 3 2017 4 2018 3 42 39 2 15 22 7 11 10 0  Visa mijica 8 13 4 2017 1 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 30

  32. Slide 32: Fee and investment trust business

    2017 3 2018 3 10/14 6,000 2016 4 1 1,100 5,443 5,000 2017 4 1 1,300 4,270 4,000 3,770 3,000 2016 10 31 JP JP 2,000 1,000 0 2014 2015.3 2015 2016.3 2016 2017.3 14,000 1,000 922 907 13,101 13,000 800 669 12,000 600 11,187 11,355 11,000 400 10,000 200 0 9,000 0 2014 2015.3 2015 2016.3 2016 2017.3 2014

  33. Slide 33: Products and loans

    2017/3 2016/3 1,251 1,164 86 544,399 427,085 117,313 2017/3 2016/3 749 696 53 1,310,151 1,135,550 174,601 2017/3 2016/3 17,731 17,220 511 90,712 92,270 1,558 2017/3 2016/3 100,507 82,776 17,731 528,434 437,722 90,712 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 32

  34. Slide 34: Business detail

    2017/3 2016/3 61 65 3 2017/3 2016/3 1,093 1,285 192 2017/3 2016/3 39,908 36,369 3,539 2017/3 2016/3 383,259 343,350 39,908 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 33

  35. Slide 35: Expenses

    2017 3 99 1 540 12,000 2017/3 2016/3 11,107 11,136 1,232 1,232 0 10,950 11,000 1,011 1,014 3 10,640 10,540 8,543 8,651 108 10,000 6,124 6,094 30 83 98 14 661 644 17 9,000 764 755 8 10,540 10,640 99 0 8,000 2012 2013.3 2013 2014.3 2014 2015.3 2015 2016.3 2016 2017.3 Copyright © 2017 JAPAN POST BANK C

  36. Slide 36: Expense breakdown

    % 2017/3 2016/3 123,212 11.68 123,243 11.58 31 101,128 9.59 101,439 9.53 311 22,084 2.09 21,804 2.04 280 854,369 81.05 865,169 81.31 10,800 612,465 58.10 609,431 57.27 3,034 8,371 0.79 9,862 0.92 1,490 66,166 6.27 64,465 6.05 1,700 12,388 1.17 11,849 1.11 539 50,702 4.81 52,635 4.94 1,932 35,306 3.3

  37. Slide 37: Capital ratio

    2017 3 22.22% % 80 % 70 2017/3 2016/3 66.04 86,169 84,993 1,176 60 56.81 387,798 322,185 65,612 50 359,065 292,532 66,533 40 38.42 22.22 26.38 4.16 26.38 30 22.22 20 10 0 13.3 2012 14.3 2013 15.3 2014 2015 16.3 17.3 2016 2014 3 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 36

  38. Slide 38: Capital adequacy details

    % 2017/3 2016/3 8,636,164 8,511,796 124,368 19,224 12,471 6,753 8,616,940 8,499,325 117,615 38,779,806 32,218,529 6,561,277 35,906,558 29,253,213 6,653,344 8 2,873,248 2,965,316 92,067 8 22.22 26.38 4.16 % 2017/3 2016/3 9,618 5,980 3,637 2,380 1,788 592 6,544 3,662 2,882 86,169 84,993 1,176 11.16 7.

  39. Slide 39: Medium-term targets progress

    2015/3 2018/3 2015/3 2016/3 2017/3 1 1 180.7 3 178.4 179.3 2.3 2016/3 2018/3 2 2.39 1 1.66 1.96 18/3 0.73 2016/3 2018/3 5,694 4,819 4,420 4,800 4,900 3,694 3,250 3,122 3,300 3,500 8,543 500 9,174 8,651 630 2015/3 1 2015 3 0.6 2015 3 177.1 2016 3 177.8 2017 3 179.4 2 2015 3 2016 3 1.79 2017 3 2.10 Co

  40. Slide 40: Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

    12 8 12 8 4 3 5 5 4 3 Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 39

  41. Slide 41: Seven-year financial data

    2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 17,189 16,700 16,243 15,687 16,347 14,520 14,102 1 16,864 16,773 15,321 14,702 15,407 13,610 12,235 879 884 881 926 892 911 866 2 12,101 11,745 11,115 10,960 11,147 10,661 10,561 3 0 5,083 4,954 5,128 4,726 5,199 3,858 3,540 181 807 807 924 494 961 87

  42. Slide 42: Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved.

    Copyright © 2017 JAPAN POST BANK CO., LTD. All Rights Reserved. 41

Japan Post Bank — FY2016 Earnings Presentation on 6ix