SBI Shinsei Bank, Limited · TSE:8303
SBI Shinsei Bank — Shinsei Bank — Shareholder Meeting (June 2011)
18 slides from SBI Shinsei Bank's shareholder meeting presentation, Jun 22, 2011
Slide 1: Eleventh Annual General Meeting of Shareholders
[TRANSLATION] The Bank assumes no responsibility for this translation or for direct, indirect or any other form of damages arising from the translations. Eleventh Annual General Meeting of Shareholders Shinsei Bank, Limited June 22, 2011
Slide 2: Fiscal Year 2010 Financial Results
Fiscal Year 2010 Financial Results 2
Slide 3: Consolidated Financial Summary: Higher revenues and lower expenses led to higher OBP
Consolidated Financial Summary: Higher revenues and lower expenses led to higher OBP Revenue Expenses OBP FY2009 FY2010 FY2009 FY2010 FY2009 FY2010 JPY BN JPY BN JPY BN 300 285.5 292.1 300 300 200 200 168.3 200 142.8 149.2 117.1 100 100 100 0 0 0 -100 -100 -100 -200 -200 3 -200
Slide 4: Consolidated Financial Summary: Lower credit costs, first positive net income in 3 terms
Consolidated Financial Summary: Lower credit costs and other losses for first positive net income in 3 terms Net Credit Costs Other Gains / Losses Net Income (Loss) FY2009 FY2010 FY2009 FY2010 FY2009 FY2010 JPY BN JPY BN JPY BN 300 300 300 200 200 200 112.2 100 100 100 68.3 42.6 0 0 0 -10.0 -100 -10
Slide 5: Institutional Group
Institutional Group: Strong performance despite weak economy Revenue OBP OBP after Net Credit Costs JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 300 300 300 200 200 200 100 100 100 28.3 28.6 12.2 11.6 9.2 9.1 0 0 0 -100 -100 -100 -200 -200 5 -200
Slide 6: Markets and Investment Banking Group
Markets and Investment Banking Group: Absence of non-recurring losses drives recovery in performance Revenue OBP OBP (OBL) after Net Credit Costs JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 300 300 300 200 200 200 100 76.8 100 100 54.8 31.3 3.7 18.0 0 0 0 -59.2 -100 -100 -100 -200
Slide 7: Individual Group
Individual Group: Full-scale implementation of revised MLBL impacts performance in consumer finance Revenue OBP OBP after Net Credit Costs JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 300 300 300 208.2 200 200 200 157.1 100 100 84.0 100 52.6 37.7 24.0 0 0 0 -100 -100 -100 -200 -200
Slide 8: Corporate/Other
Corporate/Other: Corporate/Other has continued to contribute Revenue OBP OBP after Net Credit Costs JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 JPY BN FY2009 FY2010 300 300 300 200 200 200 100 100 100 29.4 30.1 29.7 17.5 17.1 17.1 0 0 0 -100 -100 -100 -200 -200 8 -200
Slide 9: Real Estate Portfolio
Real Estate Portfolio: Reduced real estate portfolio and coverage ratio high Real Estate Non-Recourse Finance Real Estate Non-Recourse JPY BN Finance by Credit Category 1,500 Mar 2010 Mar 2011 JPY BN Book Coverage Balance Ratio Normal 158.6 1,000 950.0 Need Caution 264.9 Performing Loans 658.6 Sub-t
Slide 10: Non-Core Assets
Non-Core Assets: Divestiture moving forward more rapidly than outlined in our Medium-Term Management Plan Non-Core Assets JPY BN Non-Core Assets： 1,500 Volatile Business Mar 2010 Mar 2011 Businesses where we are in a comparatively disadvantageous position to acquire proprietary 1,000 886.0 knowledge
Slide 11: Grey Zone Liabilities
Grey Zone Liabilities: Shinsei Financial largely covered by GE indemnity with industry level coverage for other consumer finance subsidiaries Shinsei Financial Shinki APLUS FINANCIAL FY2009 FY2010 FY2009 FY2010 FY2009 FY2010 JPY BN JPY BN JPY BN 175 175 175 150 150 150 130.8 125 125 125 100 100 100
Slide 12: Impact of Great East Japan Earthquake
Impact of Great East Japan Earthquake: Overall impact is negligible, but made necessary provisions in 4Q Breakdown of earthquake-related credit costs JPY BN Credit Costs Institutional Banking 0 Domestic real estate non-recourse finance 0 Showa Leasing 1.6 Housing Loans 0.5 Shinsei Financial 1.8 Shin
Slide 13: Asset Quality: Decline in loans & bills discounted
Asset Quality: Decline in loans & bills discounted due to reduction of risk-weighted assets and impact of revised MLBL Assets Liabilities JPY BN JPY BN Mar 2010 Mar 2011 Mar 2010 Mar 2011 12,500 12,500 11,376.7 10,741.8 10,231.5 10,000 10,000 9,620.3 Others Others Securities Deposits 7,500 Loans & 7
Slide 14: Asset Quality: NPL remains elevated, high coverage ratio
Asset Quality: NPL remains elevated, but maintaining high coverage ratio Non-Performing Loan (NPL) Amount of NPL and Ratio Amount of Coverage (Ratio) Mar 2010 Mar 2011 JPY BN Mar 2010 Mar 2011 10% 333.0 325.1(97.6%) 300 8% 279.6 6.70% 6.78% 270.6(96.8%) 6% 200 4% 100 2% 0% 0 NPL Ratio Under Financia
Slide 15: Capital
Capital: We are also implementing strategies to strengthen our capital base Capital Adequacy Data March March JPY BN 2010 2011 Basic Items (Tier I) 490.7 516.7 Supplementary Items (Tier II) 268.7 231.8 Deduction (114.0) (96.8) Total Capital 645.4 649.9 Risk Assets 7,722.1 6,653.7 Total Capital Adequ
Slide 16: Dividend: Year-end Dividend JPY 1.00 per share
Dividend: Year-end Dividend JPY 1.00 per share 16
Slide 17: FY2011 Forecast: Earnings & Dividends
FY2011 Forecast: Earnings & Dividends: Consolidated Net Income: 22.0 billion yen Non-consolidated Net Income: 15.0 billion yen Year-end Dividend: JPY 1.00 per share 17
Slide 18: Shinsei Bank
@®) SHINSEIBANK