Japan Post Bank Co., Ltd. · TSE:7182

Japan Post Bank — FY2018 Earnings Presentation

47 slides from Japan Post Bank's earnings presentation, May 21, 2019

  1. Slide 1: Financial Results for the Fiscal Year Ended March 2019

    BP p56 428 BANK 2019 3 2019 5 21

  2. Slide 2: Contents

    1. P.2 2019 3 2020 3 2. 2019 3 P.13 Appendix P.35 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 1

  3. Slide 3: 1. Summary of results

    1. p.12 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 2

  4. Slide 4: Summary of results and forecasts

    2019 3 2020 3 2020 3 2,700 2021 3 2,800 2019 3 2,661 102.3 2018/3 2019/3 2019/3 2020/3 2021/3 1 13,848 13,200 12,928 271 12,900 13,000 964 1,000 1,067 67 1,200 1,300 10,429 10,600 10,364 235 10,400 10,400 4,996 3,700 3,739 39 3,750 3,900 3,527 2,600 2,661 61 2,700 2,800 102.3 Copyright © 2019 JAPAN

  5. Slide 5: Net income and key items

    2019 3 2,661 102.3 2018/3 2019/3 2020/3 2021/3 4,996 3,739 1,256 3,750 3,900 3,527 2,661 865 2,700 2,800 102.3 2018/3 2019/3 2020/3 2021/3 2 4,371 6,062 1,690 6,900 1.7 18/3 30 964 1,067 103 1,200 1,254 2018/3 2019/3 3 79.0 81.9 2.9 2021 3 p.8 4 1.6 2.9 1.3 10 2019 3 15.80 Copyright © 2019 JAPAN POS

  6. Slide 6: Income and balance summary

    2,661 A 198.4 3,635 102.3 6 117.9 4,203 3,739 7,215 101.0 3,011 6 80.4 7,839 2,661 24.5 3,742 25.0 107 7 B 10,161 1,595 A B 3,742 1,067 103 ☛ p 27 2,041 139 5 29,285 12,909 10,375 75 8 12,294 7,604 ☛ p 14 9,946 1,035 1 50 70.4 ☛ p 33 6,536 3,760 507 507 ☛p8 34,274 3,470 ☛ p 22 ATM 758 74 15.80 1.63

  7. Slide 7: Interest rate environment

    3.5 2.74 3.0 2.40 $LIBOR3M 2.5 2.56 1.94 10 2.41 5 1.78 1.93 2.23 2.0 1.37 1.5 1.21 1.0 1.13 0.63 0.52 0.34 0.5 0.39 0.44 20 0.06 0.04 LIBOR3M 0.04 0.08 0.0 0.03 10 0.13 0.18 2 0.20 0.20 0.5 1.0 15/3 16/3 17/3 18/3 19/3 / Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 6

  8. Slide 8: Trends in assets and ratios

    180 60 70% 66.0% 56.0 157.3 154.5 160 50.3 147.9 56.8% 60% 50 140 135.0 128.0 121.5 50% 120 116.8 40 38.7 38.4% 32.2 40% 100 81.9 30 79.0 80 71.6 30% 26.3% 63.0 21.5 22.2% 60 20 49.8 16.5 17.4% 20% 13.8 15.7% 38.9 40 33.0 10 10% 20 0 0 0% 13/3 14/3 15/3 16/3 17/3 18/3 19/3 13/3 14/3 15/3 16/3 17/3 1

  9. Slide 9: Asset composition trends

    2019 3 81.9 2.9 100 90 6 90 4 5 81.9 79.0 5 80 2.9 71.6 1.6 70 0.7 63.0 4 60 49.8 2.9 50 60.1 3 0.1 57.9 38.9 52.3 40 45.4 1.0 33.0 HF 32.9 2 1.6 30 22.7 0.7 15.7 20 1.6 2.6 2.9 2.4 0.9 1.6 2.3 2.3 2.2 2.2 1 4.0 2.5 2.2 0.7 3.1 2.8 10 6.0 5.9 6.2 6.8 7.7 8.0 7.9 0.3 1.2 PE 0.5 0.1 0.5 5.8 5.6 5.5 5.

  10. Slide 10: Fee business and ATM initiatives

    ATM  2018/3 2019/3 Biz 964 1,067 103 2019 4 591 612 20 2019 4 2018 10 97 107 10 ATM ATM 92 145 53  2017 1 190 222 31 ATM  19 ATM 9 8 1 2018 11 19 16 15 0 44 46 1  12 12 0 1,540 2019 3 31 18,211 2019 3 31 7 3 3  iDeCo 2019 4 2020 3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

  11. Slide 11: iDeCo and investment trust initiatives

    10,000 8,910 1,531 2017 4 1 1,300 8,000 7,378 2018 4 1 1,600 6,000 5,443 2019 4 1 1,700 4,000 2,000 0 17/3 2016 18/3 2017 19/3 2018 1,540 1,416 124 1 2018 3 31 24,000 22,859 2 233 22,000 20,000 2018 10 18,000 18,000 16,423 16,000 14,000 13,101 iDeCo 12,000 0 10,000 17/3 2016 2017 18/3 19/3 2018 Copy

  12. Slide 12: Customer account and channel trends

    9,000 500 8,619 8,246 11 7,881 450 8,000 17/4/1®19/4/1 7,484 7,112 400 1,050 7,000 12 346 358 350 1,700 6,000 300 287 300 650 5,000 241 5,234 5,267 250 4,946 4,728 4,731 13 4,000 200 15/4/1 16/4/1 17/4/1 18/4/1 19/4/1 10 18,878 18,618 18,382 17,937 17,350 Copyright © 2019 JAPAN POST BANK CO., LTD. A

  13. Slide 13: Management initiatives and ALM

    1. = 2. 2018 3 2019 3 2020 3 1 3 3 3. 4. 5. 6. 1,027 40 10,263 89 7. 8. 9. 10. 2019 3 31 11. 12. ALM 13. Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 12

  14. Slide 14: FY2019 forecasts

    2 2019 3 • 2,661 865 • 2,661 102.3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 13

  15. Slide 15: Statement of income

    2018/3 2019/3 2018/3 2019/3 2,106,306 2,089,704 16,601 14,623 13,270 1,353 492,883 506,985 14,102 11,756 10,161 1,595 4,800 4,000 800 964 1,067 103 83,681 83,681 1,902 2,041 139 82,241 82,241 1,949 2,194 245 42,415 39,907 2,507 64 122 57 1,392,012 1,371,352 20,659 10,450 10,375 75 61,455 52,974 8,48

  16. Slide 16: ROE and OHR

    2018/3 2019/3 %pt 17.42 15.78 1.64 8 7,720 8 8,442 50 3,435 56 335 ROE 3.02 2.32 0.70 3,527 2,661 2 11 6,465 11 4,319 ROE 4.00 2.97 1.02 3,527 2,661 2 8 8,121 8 9,338 OHR 71.46 78.18 6.72 1 450 1 375 1 4,623 1 3,270 0.74 0.67 0.06 0.57 0.49 0.07 0.74 0.67 0.17 0.17 17.43 15.80 1.63 8 7,788 8 8,533 5

  17. Slide 17: Balance sheet

    2018/3 2019/3 2018/3 2019/3 49,288,314 50,698,549 1,410,235 179,882,759 180,999,134 1,116,374 480,000 400,000 80,000 1,985,285 11,569,371 9,584,086 8,368,139 8,368,139 13,812,123 2,473,457 11,338,666 8,224,153 8,224,153 191,481 28,029 163,451 278,566 295,679 17,113 2,400 3,900 1,500 32 2 29 309 628

  18. Slide 18: Income detail

    2018/3 2019/3 2018/3 2019/3 1,462,367 1,327,033 135,333 731 4,107 3,376 1,175,691 1,016,126 159,565 713 3,556 2,843 96,448 106,761 10,313 17 550 533 190,227 204,145 13,918 498,937 370,192 128,745 194,930 219,448 24,517 174,218 99,417 74,801 6,473 12,241 5,768 28,025 4,596 32,622 1,045,046 1,037,537

  19. Slide 19: Interest margins and gains

    2019 3 1 161 0.49% 1.6% 15,407 16,000 2018/3 2019/3 6,657 6,379 278 1.4% 13,610 14,000 8,520 7,528 992 12,235 1.2% 11,756 12,000 6,118 5,233 885 1,862 1,149 713 10,161 1.0% 10,000 2018/3 2019/3 0.8% 0.76% 8,000 0.66% 5,099 3,782 1,317 0.60% 0.57% 0.6% 6,000 7,321 7,002 319 0.49% 7,303 6,987 315 0.4%

  20. Slide 20: Yields by asset class

    % 2018/3 2019/3 195,014,321 852,033 0.43 194,710,207 752,825 0.38 0.05 4,765,201 14,008 0.29 6,090,997 12,072 0.19 0.09 82,402,056 730,011 0.88 77,703,674 615,038 0.79 0.09 8,414,660 1,417 0.01 5,293,086 910 0.01 0.00 51,583,059 25,115 0.04 49,543,054 30,905 0.06 0.01 186,524,351 186,280 0.09 187,12

  21. Slide 21: Yields and spreads overall

    % 2018/3 2019/3 201,467,351 1,502,747 0.74 200,414,539 1,357,985 0.67 0.06 4,767,735 14,019 0.29 6,095,997 12,093 0.19 0.09 136,469,126 1,460,377 1.07 136,708,838 1,313,813 0.96 0.10 8,414,660 1,417 0.01 5,293,205 910 0.01 0.00 51,651,521 26,135 0.05 49,551,855 31,069 0.06 0.01 191,901,004 327,056 0

  22. Slide 22: Securities portfolio composition

    2019 3 58.3 62.4 2018/3 2019/3 % % 1,392,012 67.0 1,371,352 66.5 20,659 8.8 4.3% 627,497 30.2 583,565 28.3 43,931 1 171,526 8.2 162,791 7.9 8,735 592,988 28.5 624,995 30.3 32,007 50.6 58.3 202,443 9.7 220,355 10.6 17,911 24.6% 28.3% 2 390,426 18.7 404,339 19.6 13,912 5.2 2.5% 205.9 42,415 2.0 39,907

  23. Slide 23: Securities holdings by type

    2019 3 3 4,274 2018/3 2019/3 314,589 10,035 272,425 7,931 2018/3 2019/3 1,122,457 37,699 1,141,934 35,172 1,080,835 19,120 1,102,419 21,285 336,457 11,299 333,406 11,676 202,119 3,753 220,030 6,377 390,426 2,658 404,339 1,849 151,831 1,408 144,642 1,382 5,687 2,664 41,622 12,892 39,514 11,222 22,861

  24. Slide 24: Unrealized gains and losses

    2018/3 2019/3 29,103,961 958,146 25,015,921 755,550 4,088,039 202,596 533,474 4,001 533,474 4,001 2,322,529 37,283 1,660,749 28,626 661,780 8,656 32,433 8,144 32,433 5,014 3,130 32,433 8,144 32,433 5,014 3,130 31,458,923 1,003,574 27,242,577 793,192 4,216,345 210,381 2018/3 2019/3 28,790 396 96,909

  25. Slide 25: Valuation gains and losses

    2018/3 2019/3 4,162,251 1,289,201 3,951,489 1,122,266 210,761 166,935 2,286,148 1,262,041 2,141,784 1,106,458 144,363 155,583 1,256,039 27,061 1,195,685 17,468 60,354 9,593 1 2 2019 3 3,573 2018 3 1,088 2018/3 2019/3 6,341,492 110,021 7,839,145 122,376 1,497,652 12,355 4,925,816 117,531 6,527,044 32

  26. Slide 26: Credit ratings of holdings

    85 A 95 BBB BB BBB 1.85% 5.04% 9.51% 0.28% BB 0.11% A 1.30% 0.34% 0.24% 0.03% 9.63% 0.07% 1.30% 0.04% 0.74% 9.84% 19.36% 1.11% 16.66% 11.61% 70.21% 67.90% A 85.44% 2019 3 194 1 1 2 3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 25

  27. Slide 27: Portfolio risk assets

    117 5 82 3 2018/3 2019/3 2018/3 2019/3 6 6 1 1 55 55 1 8 8 0 3 58 60 2 38 38 0 31 27 5 1 1 2 35 35 0 0 0 0 0 1 2 2 0 2 2,3 3 2 0 3 2 3 1 2007/10/1 2016/3 2019/3 ポートフォリオの 3 3.1% 1.2% 3 2.5% 1.8% 2.0% 3.6% 3 5.1% 1.7% 4.7% 0.1% 0.2% 2.8% 3.0% 2 2.9% 28.3% 40.1% 4 22.1% 30.3% 1 2 2 88.0% 26.6% 28.8% 22

  28. Slide 28: Interest rate risk

    2015/3 2016/3 2017/3 2018/3 2019/3 BP SP 194.2 5,599 196.5 4,804 197.5 4,330 198.9 4,384 198.4 3,635 151.7 947 141.7 356 131.5 2,433 124.6 3,800 117.9 4,203 BP BP - 2,224 - 2,504 - 3,996 - 5,718 - 7,215 BP - 3,172 - 2,147 - 1,563 - 1,918 - 3,011 42.4 4,651 54.8 5,160 66.0 6,764 74.2 8,185 80.4 7,839

  29. Slide 29: Deposits

    2019 3 180.9 2018/3 2019/3 180.9 179.4 179.8 73.7 79.9 6.1 180 177.7 177.8 14.4 16.1 1.7 58.9 63.4 4.4 170 0.3 0.4 0.0 105.9 100.9 5.0 8.6 7.0 1.5 160 97.2 93.8 3.4 0.1 0.1 0.0 179.8 180.9 1.1 1500 2014 15/3 2015 16/3 2016 17/3 2017 18/3 2018 19/3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Right

  30. Slide 30: Expenses

    2019 3 74 1 353 12,000 2018/3 2019/3 11,136 1,264 1,242 22 11,000 1,033 1,016 17 10,640 10,540 10,428 8,389 8,416 27 10,353 10,000 5,981 6,006 25 56 16 40 605 596 8 9,000 774 695 79 10,428 10,353 74 0 8,000 2014 15/3 2015 16/3 2016 17/3 2017 18/3 2018 19/3 Copyright © 2019 JAPAN POST BANK CO., LTD.

  31. Slide 31: Loans and portfolio breakdown

    % 2018/3 2019/3 126,471 12.12 124,201 11.99 2,270 103,370 9.91 101,619 9.81 1,750 23,101 2.21 22,582 2.18 519 838,925 80.44 841,648 81.28 2,723 598,116 57.35 600,661 58.01 2,544 5,679 0.54 1,619 0.15 4,060 60,538 5.80 59,654 5.76 884 12,670 1.21 13,332 1.28 661 55,621 5.33 65,031 6.28 9,410 37,446 3

  32. Slide 32: Capital adequacy ratio

    2019 3 15.78% % % 2018/3 2019/3 60 87,720 88,442 721 503,435 560,335 56,900 50 475,747 533,340 57,593 40 17.42 15.78 1.64 38.42 % 30 26.38 2018/3 2019/3 22.22 20 87,788 88,533 744 17.42 15.78 503,422 560,045 56,622 10 475,734 533,051 57,316 17.43 15.80 1.63 0 2014 15/3 2015 16/3 2016 17/3 2017 18/3

  33. Slide 33: Capital ratio details

    % 2018/3 2019/3 8,801,141 8,879,601 78,460 29,070 35,388 6,318 8,772,071 8,844,213 72,141 50,343,515 56,033,562 5,690,047 47,574,709 53,334,010 5,759,301 8 2,768,805 2,699,551 69,254 8 17.42 15.78 1.64 % 2018/3 2019/3 8,807,898 8,888,716 80,818 29,075 35,398 6,322 8,778,822 8,853,318 74,496 50,342,2

  34. Slide 34: Regulatory capital and leverage

    2020 3 2019 3 1 50 25 2020 3 1 50 25 2021 3 1 1 50 60 1 50 50 50 40 25 25 30 2019 3 20 20% 15.80% 15.17% 10 25 25 15% 12.60% 10.83% 10% 0 2018 19/3 2019 20/3 5% 2019/3 2020/3 0% 1,874 1,874 MUFG Bank SMBC 70.4% 69.4% MUFG Bank/SMBC/ Tier1 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserve

  35. Slide 35: Securitized product holdings

    1,2,3 2018/3 2019/3 12,774 361 AAA 13,057 401 AAA 492 1 A 4 1,318 1 AAA 1,655 0 AAA 15 0 AAA 12 0 AAA 14,599 362 14,725 402 1,711 81 AAA 997 116 AAA 6 5 4,958 168 AAA 11,787 60 AAA 6,669 249 12,785 177 21,269 112 27,511 225 1 2 3 4 5 6 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

  36. Slide 36: Appendix

    Appendix Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 35

  37. Slide 37: Alternative investments and fund commitments

    2016 7 LP 2019 3 31 18 MBC Shisaku1 2019 3 31 ➊ 2016/ 7 117 ➋ 2016/11 25 ➌ 2016/11 2 1 ➌ ➍ 2017/ 4 50 2 ➎ 2017/ 6 6 ➓⓲ ➏ 2017/ 8 5 ➐ 2017/10 23 1 ➑ 2017/11 20 1 ➏ ➒ MBC Shisaku1 2017/12 20 2 ⓫ ➍ ⓮⓰ ➓ 2018/ 3 5 ➑ ⓭ ➒➎ ⓫ 2018/ 3 5 1 ➐ ⓬ 2018/ 3 3 ⓬ ➊ ⓭ 2018/ 8 12.5 ➋ ⓮ 2 2018/ 8 20 ⓯⓱ ⓯ 1 2018/10 30 M

  38. Slide 38: Private equity fund initiatives

    JP PE JP PE GP JP GP LP GP LP PE 2019 3 JPIC  27  900 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 37

  39. Slide 39: Cashless payment initiatives

    “ ” QR 2019 5 8 Pay GMO Pay 1 2019 5 8 ✔ ✔ ✔ ✔ ✔ Pay PR ✔ ✔ 1 Pay Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 38

  40. Slide 40: ATM partnership initiatives

    ATM ATM No.1 ATM ATM Win-Win ATM No.1 ATM Win-Win ATM No.1 ATM 2017 7 2018 11 ATM ATM 2019 3 ATM ATM 1,400 2019 3 ATM ATM 16 ATM 2018 4 ATM 4 ATM ATM 2018 10 ATM 2019 3 ATM 2,849 2019 4 ATM 4 ATM 4 2,096 ATM 1,406 ATM 543 24 152 17/3 17/9 18/3 18/9 19/3 18/3 2017 19/3 2018 Copyright © 2019 JAPAN POS

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

    20/3 19/3 20/3 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 40

  42. Slide 42: Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

    11 7 2019 4 1  12  98.48 2018 6 2019 5 11 7 4 3 4 3 5 4 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 41

  43. Slide 43: Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

    2016 5 • • • • Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 42

  44. Slide 44: Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

    2016 4 2019 5 7 • • • 3 1/3 • 3 3 1 Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved. 43

  45. Slide 45: ESG initiatives and TCFD

    1  2021 4 1 14     14.4% 14.7% 13.8% 13.8% 13 15% 12.7% 15% 12.9% 11.5% 14% 1 12% 10.9% 12% 2 8.9% 2017/3 2018/3 2019/3 9% 9% 6% 6% 9.9 100.0 10.4 101.9 13.5 99.3 3% 3% 0% 0% 2017/3 2018/3 2019/3 15/4 16/4 17/4 18/4 19/4 15/7 16/7 17/7 18/7 / / 100.0 100.0 100.0 97.5 100.0 95.5  1  2016/3 201

  46. Slide 46: Financial data summary

    2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 15,687 16,347 14,520 14,102 14,623 13,270 1 14,702 15,407 13,610 12,235 11,756 10,161 926 892 911 866 964 1,067 2 10,960 11,147 10,661 10,561 10,450 10,375 0 0 4,726 5,199 3,858 3,540 4,173 2,894 924 494 961 879 823 848 5,650 5,694 4,819 4,420 4,996 3,742 6

  47. Slide 47: Copyright © 2019 JAPAN POST BANK CO., LTD. All Rights Reserved.

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

Japan Post Bank — FY2018 Earnings Presentation on 6ix