Japan Post Bank Co., Ltd. · TSE:7182

Japan Post Bank — H1 FY2020 Earnings Presentation

52 slides from Japan Post Bank's earnings presentation, Nov 20, 2019

  1. Slide 1: 2020年3月期 中間決算説明会

    BP p56 428 BANK 2020 3 2019 11 20

  2. Slide 2: Contents

    1. P.2 2020 3 2. 2020 3 P.15 Appendix P.37 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 1

  3. Slide 3: 1. Interim results

    1. p.14 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 2

  4. Slide 4: Summary of interim results

    1,448 A 198.5 1,999 53.6 2 115.4 2,275 2,011 3,849 53.6 1,573 2 83.1 4,275 1,447 9.1 2,010 10.0 11 3 B 5,018 472 A B 2,010 654 124 ☛ p 29 1,109 71 1 29,706 421 5,146 73 4 14,008 1,713 ☛ p 16 5,752 4,193 1 25 ☛ p 35 8,436 1,899 1,510 1,002 ☛p7 37,795 3,521 ☛ p 24 ATM 491 119 15.74 0.06 pt ☛ p 33 5 16

  5. Slide 5: Earnings forecast for FY2020

    2020 3 2020 3 2,700 2021 3 2,800 2019 9 1,448 53.6 2018/9 2019/9 2020/3 2021/3 6 6,861 6,485 375 12,900 13,000 529 654 124 1,200 1,300 5,212 5,141 71 10,400 10,400 2,233 2,011 222 3,750 3,900 1,592 1,448 144 2,700 2,800 53.6 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 4

  6. Slide 6: Net income and gross profit overview

    2019 9 1,448 53.6 2018/9 2019/9 2020/3 2021/3 2,233 2,011 222 3,750 3,900 1,592 1,448 144 2,700 2,800 53.6 2018/9 2019/9 2020/3 2021/3 7 3,375 2,402 973 6,900 1.7 18/3 30 529 654 124 1,200 1,254 2018/9 2019/9 8 80.0 84.3 4.3 2021 3 p.7 9 2.5 3.0 0.5 10 2019 9 15.74 Copyright © 2019 JAPAN POST BANK C

  7. Slide 7: Earnings trends

    3 50 3 50 5,000 3,500 3,900 3,000 2,661 2,700 2,800 4,000 3,700 3,739 3,750 2,600 2,500 3,000 2,000 2,000 1,500 1,000 1,000 2,233 2,011 1,592 1,448 500 0 0 19/3 19/3 20/3 20/3 21/3 19/3 19/3 20/3 20/3 21/3 3 1.7 50 3 50 3.4 1,254 40,000 8,464 1,400 18/3 30 18/3 1.7 1,200 1,200 1,067 30,000 964 1,000

  8. Slide 8: Asset management and investment trends

    2019 9 84.3 3.0 8 9 100 90 6 90 84.3 4 5 81.9 79.0 3.0 5 80 2.9 1.6 71.6 70 0.7 63.0 4 60 49.8 2.9 3.0 50 57.9 60.1 62.6 3 0.1 0.2 38.9 52.3 40 45.4 0.6 HF 1.0 33.0 32.9 2 30 1.6 0.8 22.7 0.7 15.7 20 1.6 2.6 2.9 2.4 2.5 0.9 1.6 2.3 2.3 2.2 2.2 1 4.0 3.1 2.8 2.5 2.2 2.3 0.7 10 7.7 8.0 7.9 7.8 0.3 1.2

  9. Slide 9: Interest rate environment

    3.5 2.74 3.0 2.40 2.41 2.5 2.56 $LIBOR3M 1.78 1.93 2.23 2.0 1.68 1.94 10 1.5 1.21 5 1.37 1.55 1.0 1.13 0.63 0.39 0.52 0.5 0.44 0.34 0.20 0.06 20 0.04 0.04 0.08 0.0 LIBOR3M 0.03 0.13 0.18 10 0.20 0.20 0.20 2 0.5 0.32 1.0 15/3 16/3 17/3 18/3 19/3 19/9 / Copyright © 2019 JAPAN POST BANK CO., LTD. All R

  10. Slide 10: Risk asset investment trends

    180 60 66.0% 70% 56.0 56.6 157.3 154.5 160 50.3 147.9 56.8% 60% 50 140 135.0 128.0 121.5 50% 120 116.8 116.7 40 38.7 38.4% 100 32.2 40% 81.9 84.3 30 79.0 80 71.6 30% 26.3% 63.0 21.5 22.2% 60 20 49.8 16.5 17.4% 20% 38.9 13.8 15.7% 15.7% 40 33.0 10 10% 20 0 0 0% 13/3 14/3 15/3 16/3 17/3 18/3 19/3 19/9

  11. Slide 11: Business initiatives and ATM network

    ATM  2018/9 2019/9 2019 4 2018 10 529 654 124 Biz 302 399 96 2019 4 51 58 6 ATM ATM 69 92 22  2017 1 111 118 6 ATM  ATM 4 2 1 9 8 1 22 23 0  6 5 0 1,541 2019 9 30 18,247 2019 9 30 2 3 1  iDeCo 2019 4 2020 3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 10

  12. Slide 12: Key business KPIs

    10,000 8,910 2017 4 1 1,300 8,000 7,378 2018 4 1 1,600 6,000 2019 10 1 1,700 4,000 4,656 4,227 KPI 3,577 2,000 2019 3 0 70 18/3 2017 19/3 2018 20/3 2019 10 2019 3 50% 48% 26,000 25,534 24,000 40% 22,859 76 22,000 30% 20,192 20,000 22% 18% 11 65.1 18,000 20% 16,423 16,000 10% 7% 4% 14,000 0% 0% 1% 0

  13. Slide 13: Payment services initiatives

    Pay PR ― “ ” QR 2019 5 8 4 40 2019 10 1 GMO Pay 12 2019 10 31 24 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 12

  14. Slide 14: Expenses and employee trends

    9,000 500 8,619 8,246 14 7,881 450 8,000 7,484 17/4/1→19/4/1 400 6,940 7,000 15 1,200 346 350 358 1,850 6,000 300 287 300 650 5,000 241 5,234 5,266 250 4,946 4,728 4,731 16 4,000 200 15/4/1 16/4/1 17/4/1 18/4/1 19/4/1 13 18,878 18,618 18,382 17,937 17,161 Copyright © 2019 JAPAN POST BANK CO., LTD. A

  15. Slide 15: Management priorities

    1. 2. 633 21 5,099 37 3. 4. 5. 6. = 7. 2018 9 2019 9 3 2020 3 1 3 3 8. 9. 10. 11. KPI 2019 3 12. Pay 13. 14. 15. ALM 16. Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 14

  16. Slide 16: 2. Forecast for FY2020

    2 2020 3 • 1,447 • 1,448 144 53.6 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 15

  17. Slide 17: Statements of income

    2018/9 2019/9 2019/3 2019/9 7,202 6,782 419 2,089,704 2,131,229 41,524 5,491 5,018 472 506,985 552,095 45,110 529 654 124 4,000 1,600 2,400 83,681 99,695 16,014 1,181 1,109 71 39,907 41,977 2,069 1,328 1,078 249 1,371,352 1,354,234 17,117 175 53 229 52,974 49,362 3,611 5,219 5,146 73 1,976,196 2,014

  18. Slide 18: Profitability indicators ROE and OHR

    2019/3 2019/9 %pt 15.78 15.71 0.06 8 8,442 8 8,977 56 335 56 6,043 ROE 2.32 2.51 0.18 2,661 1,447 2 11 4,319 11 4,983 ROE 2.97 3.20 0.22 2,661 1,447 2 8 9,338 8 9,986 OHR 78.18 75.87 2.31 1 375 5,146 1 3,270 6,782 0.67 0.65 0.01 0.49 0.48 0.01 0.67 0.65 0.17 0.16 15.80 15.74 0.06 8 8,533 8 9,079 56

  19. Slide 19: Balance sheet

    2019/3 2019/9 2019/3 2019/9 50,698,549 55,209,560 4,511,011 180,999,134 181,902,696 903,561 400,000 160,000 240,000 11,569,371 13,832,978 2,263,606 8,368,139 9,969,560 1,601,420 2,473,457 3,052,225 578,767 295,679 270,816 24,863 28,029 25,579 2,450 2 83 80 3,900 7,700 3,800 3,990,780 4,197,774 206,9

  20. Slide 20: Income statement details

    2018/9 2019/9 2018/9 2019/9 720,278 678,294 41,984 370 109 260 549,135 501,840 47,295 347 109 238 52,994 65,490 12,495 22 0 22 118,148 110,963 7,184 223,107 200,985 22,122 132,846 107,860 24,985 60,763 55,417 5,345 17,568 5,370 22,938 3,052 862 2,190 521,976 514,652 7,324 63,815 56,279 7,536 63,158

  21. Slide 21: Interest margin and gross profit

    2019 9 5,018 0.48% 2018/9 2019/9 1.2% 15,000 13,610 3,705 3,377 327 1.0% 12,235 12,500 4,343 3,782 560 11,756 2,717 2,277 439 10,161 0.8% 10,000 638 405 233 0.66% 0.60% 0.6% 0.57% 7,500 2018/9 2019/9 0.49% 0.48% 6,994 1,785 1,640 145 6,293 6,180 0.4% 5,491 5,000 3,727 3,865 137 5,018 3,720 3,855 134

  22. Slide 22: Yields and funding costs

    % 2018/9 2019/9 194,287,761 434,376 0.44 197,309,717 378,281 0.38 0.06 6,540,168 6,259 0.19 5,063,261 5,625 0.22 0.03 78,738,136 321,288 0.81 73,052,033 262,889 0.71 0.09 49,858,459 15,124 0.06 52,923,230 14,522 0.05 0.00 186,503,726 63,836 0.06 189,969,911 40,518 0.04 0.02 180,944,300 47,152 0.05 1

  23. Slide 23: Yields and funding costs (total)

    % 2018/9 2019/9 200,097,163 716,116 0.71 202,377,177 667,413 0.65 0.05 6,545,168 6,269 0.19 5,070,392 5,643 0.22 0.03 135,984,108 693,384 1.01 134,642,604 648,456 0.96 0.05 49,872,483 15,245 0.06 52,925,757 14,552 0.05 0.00 191,590,127 166,981 0.17 194,967,339 165,573 0.16 0.00 180,944,300 47,152 0.

  24. Slide 24: Securities portfolio composition

    2019 9 54.6 64.8 2019/3 2019/9 % % 1,371,352 66.5 1,354,234 64.5 17,117 10.2 583,565 28.3 546,392 26.0 37,173 4.8% 1 162,791 7.9 159,358 7.5 3,432 624,995 30.3 648,483 30.8 23,487 54.6 220,355 10.6 226,684 10.8 6,329 55.0 26.0% 2 26.2% 404,339 19.6 421,407 20.0 17,067 4.9 209.8 39,907 1.9 41,977 1.9

  25. Slide 25: Unrealized gains and losses on securities

    2019 9 3 7,795 2019/3 2019/9 272,425 7,931 244,049 7,572 2019/3 2019/9 1,141,934 35,172 1,155,344 38,798 1,102,419 21,285 1,113,366 23,242 333,406 11,676 327,823 12,946 220,030 6,377 226,684 3,781 404,339 1,849 421,407 5,225 144,642 1,382 137,452 1,289 2,664 4,503 39,514 11,222 41,977 11,052 21,417

  26. Slide 26: Unrealized gains by holding category

    2019/3 2019/9 25,015,921 755,550 21,856,947 726,488 3,158,974 29,062 533,474 4,001 801,991 4,633 268,517 631 1,660,749 28,626 1,745,980 26,113 85,231 2,513 32,433 5,014 32,433 5,014 32,433 5,014 32,433 5,014 27,242,577 793,192 24,404,919 757,234 2,837,658 35,958 2019/3 2019/9 96,909 5,124 19,782 66

  27. Slide 27: Securities holdings detail

    2019/3 2019/9 3,951,489 1,122,266 4,197,774 1,105,270 246,284 16,995 2,141,784 1,106,458 2,119,470 1,086,265 22,314 20,193 1,195,685 17,468 1,145,987 21,089 49,697 3,621 1 2 2019 9 2,649 2019 3 3,573 2019/3 2019/9 7,839,145 122,376 8,592,833 266,527 753,688 144,150 6,527,044 32,497 7,026,383 166,195

  28. Slide 28: Credit ratings of holdings

    85 A 95 BBB BB BBB 1.82 5.21 9.42 0.37 BB 0.12 1.25 0.33 0.22 A 0.02 9.04 0.07 1.25 0.04 0.71 10.26 20.65 1.16 17.78 10.99 67.17 A 68.81 85.35 2019 9 198 1 2 3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 27

  29. Slide 29: Portfolio and duration trends

    117 0 84 2 2019/3 2019/9 2019/3 2019/9 6 5 0 1 55 59 4 8 7 0 3 60 63 2 38 40 2 27 23 3 1 1 0 2 35 34 1 0 0 0 0 - 0 1 2 2 0 2 2,3 2 2 0 3 3 3 0 2007/10/1 2016/3 2019/9 ポートフォリオの 3 3.1% 1.2% 3 2.3% 1.8% 2.0% 3.6% 3 5.1% 1.7% 4.6% 0.1% 0.2% 2.8% 2.9% 2 2.9% 26.0% 40.1% 4 22.1% 30.8% 1 2 2 88.0% 26.6% 31

  30. Slide 30: Deposits

    2015/3 2016/3 2017/3 2018/3 2019/3 2018/9 2019/9 BP SP 194.2 5,599 196.5 4,804 197.5 4,330 198.9 4,384 198.4 3,635 198.3 2,180 198.5 1,999 151.7 947 141.7 356 131.5 2,433 124.6 3,800 117.9 4,203 118.8 2,061 115.4 2,275 BP BP - 2,224 - 2,504 - 3,996 - 5,718 - 7,215 - 3,472 - 3,849 BP - 3,172 - 2,147

  31. Slide 31: Deposits trends

    2019 9 181.9 2019/3 2019/9 181.9 180.9 180.3 179.4 179.8 79.9 83.7 3.7 180 16.1 7.5 8.6 63.4 75.7 12.3 170 0.4 0.4 0.0 100.9 98.0 2.8 7.0 6.2 0.8 160 93.8 91.7 2.0 0.1 0.1 0.0 180.9 181.9 0.9 0 150 17/33 2017 2018 18/33 19/33 2019 18/99 2018 19/99 2019 Copyright © 2019 JAPAN POST BANK CO., LTD. All

  32. Slide 32: Funding composition

    2019 9 72 5,136 12,000 2018/9 2019/9 10,428 10,353 620 603 17 10,000 510 495 14 8,000 4,222 4,276 54 3,036 1,891 1,145 6,000 5,211 5,208 5,136 1,189 1,189 4,000 298 297 0 2,000 366 256 109 5,208 5,136 72 0 2017 18/3 2018 19/3 2019 20/3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

  33. Slide 33: Capital adequacy ratio

    % 2018/9 2019/9 62,076 11.91 60,368 11.75 1,707 51,029 9.79 49,591 9.65 1,437 11,046 2.12 10,776 2.09 269 422,213 81.05 427,615 83.24 5,402 303,689 58.30 189,162 36.82 114,527 1 118,933 23.15 118,933 2 809 0.15 255 0.04 554 29,827 5.72 29,743 5.79 83 6,549 1.25 6,033 1.17 516 32,243 6.18 31,367 6.10

  34. Slide 34: Capital ratio details

    2019 9 15.71% % % 2019/3 2019/9 50 88,442 88,977 535 560,335 566,043 5,707 40 533,340 539,298 5,958 15.78 15.71 0.06 30 26.38 % 22.22 2019/3 2019/9 20 17.42 15.78 15.71 88,533 89,079 546 560,045 565,824 5,778 10 533,051 539,080 6,029 15.80 15.74 0.06 0 16/33 2016 17/33 2017 18/33 2018 19/33 2019 19/

  35. Slide 35: Leverage ratio

    % 2019/3 2019/9 8,879,601 8,930,603 51,001 35,388 32,822 2,566 8,844,213 8,897,780 53,567 56,033,562 56,604,313 570,751 53,334,010 53,929,859 595,848 8 2,699,551 2,674,453 25,097 8 15.78 15.71 0.06 % 2019/3 2019/9 8,888,716 8,940,821 52,104 35,398 32,831 2,567 8,853,318 8,907,989 54,671 56,004,545 5

  36. Slide 36: Credit exposures

    1 25 50 2021 3 1 60 1 50 50 50 1 50 40 25 25 30 20 2019 9 25 25 20% 10 15.74% 14.44% 15% 12.18% 0 11.39% 19/3 2018 20/3 2019 10% 2019/3 2020/3 5% 1,874 1,874 0% MUFG Bank SMBC 70.4% 69.4% MUFG Bank/SMBC/ Tier1 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 35

  37. Slide 37: Appendix

    1,2,3 2019/3 2019/9 13,057 401 AAA 13,213 455 AAA 4 1,655 0 AAA 1,405 0 AAA 12 0 AAA 11 0 AAA 14,725 402 14,629 456 997 116 AAA 764 117 AAA 6 5 11,787 60 AAA 15,241 340 AAA 12,785 177 16,006 457 27,511 225 30,636 1 1 2 3 4 5 6 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 36

  38. Slide 38: Risk asset investment trends

    Appendix Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 37

  39. Slide 39: Alternative investments and funds

    2016 7 LP 2019 10 31 24 2019 10 31 25 24 20 18 6 15 12 6 3 10 9 5 3 10 18 3 0 17/3 18/3 19/3 19/10 6 80 71 4 68 9 11 22 13 16 5 14 24 8 60 20 21 48 7 12 40 11 1 2 19 48 50 15 17 19 20 21 23 20 37 19 0 17/3 18/3 19/3 19/10 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 38

  40. Slide 40: Private equity fund investments

    2019 10 31 2017/3 2018/3 2019/3 2020/3 2016/ 7 117 2018/ 8 12.5 2016/11 25 2 2018/ 8 20 2016/11 2 1 1 2018/10 30 2017/ 4 50 2 TOKYO 1 2018/12 34 1 2017/ 6 6 NVCC2 2019/ 3 54 2017/ 8 5 2019/ 3 3 2017/10 23 1 2019/ 6 9.1 1 2017/11 20 1 2019/ 7 7.1 1 MBC Shisaku1 2017/12 20 2 ㉑ 1 2019/ 7 40 2018/ 3 5 ㉒

  41. Slide 41: Group business overview

    JP PE JP PE GP JP GP GP LP LP PE 2019 9 JPIC  31  900 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 40

  42. Slide 42: ATM partnerships

    Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 41

  43. Slide 43: ATM network

    ATM ATM No.1 ATM ATM Win-Win ATM ATM ATM No.1 ATM Win-Win ATM No.1 ATM ATM 2017 7 2018 11 31,200 ATM 2019 9 1,400 2019 9 ATM 2018 4 ATM 4 2018 10 ATM ATM 16 ATM 2019 3 ATM ATM ATM 2019 4 ATM 4 4,252 ATM 4 ATM 2,849 2,096 ATM 1,406 543 24 17/9 18/3 18/9 19/3 19/9 18/3 2017 19/3 2018 Copyright © 2019

  44. Slide 44: Business initiatives

    20/3 19/3 20/3 1 1 1 2 2 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 43

  45. Slide 45: Customer-oriented initiatives

    13 9 2019 7 1  12  98.48 2018 6 2019 5 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 44

  46. Slide 46: Social contribution activities

    9 4 NPO MS&AD 11 2 2019 7 1 2 25 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 45

  47. Slide 47: Governance and shareholder policy

    2016 5 • • • • Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 46

  48. Slide 48: Governance structure

    2016 4 2019 5 7 • • • 3 1/3 • 3 3 1 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 47

  49. Slide 49: SRI indices and ESG ratings

    1  2021 4 1 14    15% 14.4% 18% 16.6% 1,2 2 12.7% 11.5% 14% 15% 14.7% 13.8% 13.8% 12% 10.9% 12.9% 100.0% 100.0% 100.6% 100.0% 100.0%100.0% 8.9% 12% 97.6% 95.5% 9% 100% 91.9% 95.7% 100% 9% 82.7% 82.5% 6% 80% 80% 6% 3% 60% 60% 3% 0% 0% 40% 40% 15/4/1 16/4/1 17/4/1 18/4/1 19/4/1 15/7/1 16/7/1 17/7/

  50. Slide 50: TCFD and ESG initiatives

    2019 4 TCFD  ESG TCFD TCFD Task Force on Climate- related Financial Disclosures 2019 5 TCFD 2019.5 ESG 2019.4 TCFD TCFD 2018.12 2019.5 TCFD ESG Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 49

  51. Slide 51: Financial data summary

    2019/3 2020/3 2015/3 2016/3 2017/3 2018/3 2019/3 4 9 4 9 16,347 14,520 14,102 14,623 13,270 7,202 6,782 1 15,407 13,610 12,235 11,756 10,161 5,491 5,018 892 911 866 964 1,067 529 654 2 11,147 10,661 10,561 10,450 10,375 5,219 5,146 0 0 5,199 3,858 3,540 4,173 2,894 1,983 1,636 494 961 879 823 848 25

  52. Slide 52: Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

    Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 51

Japan Post Bank — H1 FY2020 Earnings Presentation on 6ix