Japan Post Bank Co., Ltd. · TSE:7182

Japan Post Bank — H1 FY2019/3 Earnings Presentation

51 slides from Japan Post Bank's earnings presentation, Nov 19, 2018

  1. Slide 1: FY2019/3 Interim Results Presentation

    BP p56 428 BANK 2019 3 2018 11 19

  2. Slide 2: Contents

    P.2 2019 3 JP PE 1. 2019 3 P.13 2019 3 2. P.18 1 2 Appendix P.24 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 1

  3. Slide 3: 1. Interim results and forecasts

    p.12 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 2

  4. Slide 4: Summary of results and forecasts

    2019 3 2019 3 2,600 2021 3 2,800 2018 9 61% 2018/3 2018/9 2019/3 2021/3 13,848 6,861 13,200 13,000 964 529 1,000 1,300 10,429 5,212 10,600 10,400 4,996 2,233 3,700 3,900 3,527 1,592 2,600 2,800 61.2 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 3

  5. Slide 5: Net income and income breakdown

    2018 9 1,592 61% 2017/9 1 2018/9 2019/3 2021/3 2,571 2,233 338 3,700 3,900 1,815 1,592 222 2,600 2,800 61.2 2017/9 2 2018/9 2 2021/3 2 783 5,220 6,003 1.8 3 2,121 3,375 1,253 1.7 18/3 30% 471 529 58 1,254 2017/9 2018/9 2021/3 4 74.0 80.0 6.0 87 5 0.9 2.5 1.5 8.5 Copyright © 2018 JAPAN POST BANK CO.,

  6. Slide 6: Interest rate environment

    3.5 3.05 2.74 10 3.0 5 2.40 2.94 2.5 1.94 2.56 $LIBOR3M 1.78 1.93 2.0 1.37 1.21 1.5 1.0 1.13 0.63 0.65 0.52 20 0.39 0.5 0.44 0.06 0.13 10 0.04 0.0 LIBOR3M 0.03 0.13 0.11 2 0.04 0.20 0.5 0.20 1.0 15/3 16/3 17/3 18/3 18/9 / Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 5

  7. Slide 7: Asset management shift to risk assets

    180 60 57.2 70% 66.0% 157.3 154.5 160 50.3 147.9 56.8% 60% 50 140 135.0 128.0 121.5 50% 118.5 38.7 120 40 38.4% 32.2 40% 100 30 79.0 80.0 80 71.6 30% 26.3% 63.0 21.5 22.2% 60 20 49.8 16.5 13.8 17.4% 15.4% 20% 38.9 40 33.0 10 10% 20 0 0 0% 13/3 14/3 15/3 16/3 17/3 18/3 18/9 13/3 14/3 15/3 16/3 17/3 1

  8. Slide 8: Investment portfolio breakdown

    2017/9 2018/3 2018/9 18/3 →18/9 32.6 37.4 36.1 1.3 IG 25.3 28.2 24.4 3.9 0.3 1.6 2.9 1.2 7.0 7.5 8.8 1.3 0.9 1.6 2.5 0.8 0.3 0.5 0.8 0.3 0.5 0.9 1.3 0.4 0.1 0.3 0.5 0.2 0.0 0.0 2.7 2.9 3.0 0.2 37.8 37.2 38.5 1.3 74.0 79.0 80.0 1.0 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 7

  9. Slide 9: Private equity and hedge fund initiatives

    JP PE JP PE GP JP GP GP LP LP PE 2018 9 JPIC  27  900 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 8

  10. Slide 10: Retail business initiatives

    ATM  2017/9 2018/9 Biz 2019 4 471 529 58 2019 4 2018 10 296 302 6 47 51 4 ATM ATM 38 69 30  2017 1 ATM 9 9 0  19 ATM 93 111 18 2018 8 27 19 22 22 0 4 4 0  1,432 2018 10 1 5 6 0 18,329 2018 10 1 0 2 2  iDeCo 2018 4 2019 3 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 9

  11. Slide 11: Investment trust and iDeCo growth

    8,000 7,378 2017 4 1 1,300 6,000 5,443 2018 10 1 1,600 4,000 4,656 3,577 2,000 2,437 2017 7 10 0 17/3 2016 2017 18/3 19/3 2018 1,432 1,315 1,416 117 18,329 805 18,298 17,524 22,000 2017 6 30 20,192 20,000 iDeCo 18,000 16,423 16,000 15,215 2018 5 7 4 7 14,000 13,101 12,000 0 17/33 2017 2017 17/99 201

  12. Slide 12: Payments and ATM services

     Pay  ATM  2017 1 ATM QR 2019 16 2019  19 ATM 2018 8 27 19   Biz 2019 4  2018 1  2018 10 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 11

  13. Slide 13: Risk management and asset operation

    1. 2017 9 2018 9 2,234 1,592 2. 2017 9 2018 9 3 3 3. 3 4. 5. PE HF CMBS Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 12

  14. Slide 14: Interim results overview

    1 2019 3 • 1,592 12.2 • 1,592 61.2 p.17 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 13

  15. Slide 15: Income statement summary

    1,592 A 198.3 2,180 61.2 2 118.8 2,061 2,233 3,472 60.3 1,410 2 79.5 4,242 1,592 12.2 54 2,234 13.1 3 B A B 2,234 5,491 689 529 58 ☛ p 37 1,181 255 1 24,841 8,465 5,219 2 4 7,535 2,845 ☛ p 25 12,503 3,592 1 25 ☛ p 16 4,717 1,942 85 85 ☛ p 20 33,325 4,419 ☛ p 33 15.46 1.97 pt ☛ p 41 ATM 372 37 5 157

  16. Slide 16: Securities portfolio

    119 3 80 1 2018/3 2018/9 2018/3 2018/9 6 55 54 1 6 6 0 8 8 0 8 58 58 0 31 29 2 38 36 1 7 35 35 0 0 0 0 0 2 2 0 7,8 3 3 0 2 2 1 2007/10/1 2015/3 2018/9 11 3.1% 11 3.1% 1.8% 1.3% 2.3% 5.3% 1.7% 4.9% 3.6% 11 0.1% 0.2% 2.6% 3.1% 10 2.9% 29.6% 15.9% 12 51.8% 10 29.2% 9 10 88.0% 21.0% 27.5% 22,683 7,956 4

  17. Slide 17: Capital ratios and peer comparison

    2019 3 1 25 50 2021 3 1 1 50 60 50 50 1 50 40 25 25 30 20 1 13 2018 9 2 14 2018 9 25 25 10 20% 6% 15.46% 15.34% 4.69% 4.71% 4.55% 15% 4.24% 0 12.41% 4% 18/3 2017 19/3 2018 10.50% 10% 2018/3 2019/3 2% 5% 1,874 1,874 0% 0% 53.1% 72.0% MUFG SMBC MUFG SMBC Bank Bank Copyright © 2018 JAPAN POST BANK CO.,

  18. Slide 18: Notes

    1. 2. 510 19 5,169 39 3. 4. 5. 6. 7. 8. 9. 2010 11 10. 11. 12. 13. MUFG Bank/SMBC/ Tier1 14. MUFG Bank/SMBC/ Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 17

  19. Slide 19: 2. Asset management

    2. p.23 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 18

  20. Slide 20: Asset allocation

    1 1% 1% 1% 0% 100% 100% 30% 80 4% 2 11% 2 67 80% 39% 39% 1 80% 41% 45% 57 60 1 64% 65% 20% 50 74% 60% 60% 63% 17.4% 13.6% 40 15.4% 40% 40% 61% 10% 3 60% 2% 55% 20 20% 20% 36% 35% 26% 0% 0% 0% 0 18/3 18/9 21/3 18/3 18/9 21/3 18/3 18/9 21/3 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserve

  21. Slide 21: Hedge fund and private equity balances

    2 2018 9 80.0 2.5 100 10 87 90 9 8.5 79.0 80.0 8.5 80 1.6 2.5 8 71.6 70 0.7 7 63.0 60 6 HF 49.8 50 57.9 58.0 5 38.9 52.3 40 45.4 4 33.0 32.9 30 3 2.5 22.7 15.7 0.0 20 2.6 2.9 3.0 2 1.6 1.6 1.6 2.3 2.3 1.3 4.0 2.5 2.2 2.2 2.2 3.1 2.8 0.9 10 6.0 5.9 6.2 6.8 7.7 8.0 7.8 1 0.7 0.5 PE 0.5 0.3 5.8 5.6 5.5

  22. Slide 22: Private equity and fund investments list

    2016 7 LP 2018 10 31 15 2018 10 31 ➊ 2016/ 7 117 ➋ 2016/11 25 ➌ ➌ 2016/11 2 ➍ 2017/ 4 50 5 ➓ ➎ 2017/ 6 6 ➏ 2017/ 8 5 ➐ 2017/10 23 4 ➏ ➑ 2017/11 20 4 ⓮ ⓫ ➍ ➒ MBC Shisaku1 2017/12 20 5 ➑ ⓭ ➒➎ ➓ 2018/ 3 5 ➐ ⓬ ⓫ 2018/ 3 5 4 ➊ ⓬ 2018/ 3 3 ➋ ⓯ ⓭ 2018/ 8 12.5 ⓮ 2 2018/ 8 20 ⓯ 1 2018/10 30 Copyright © 2018

  23. Slide 23: Retail and deposit trends

    2019 250 9,000 450 8,619 7 8,246 7,881 8,000 400 17/4/1→18/4/1 7,484 450 7,000 346 350 8 950 300 6,000 287 300 9 500 5,000 241 5,234 250 4,946 4,728 4,731 4,000 200 15/4/1 16/4/1 17/4/1 18/4/1 6 18,878 18,618 18,382 17,937 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 22

  24. Slide 24: Notes

    1. 2. PE HF CMBS 3. 2022.1 4. 5. 6. 7. 8. ALM 9. Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 23

  25. Slide 25: Appendix

    Appendix Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 24

  26. Slide 26: Financial summary

    2017/9 2018/9 2018/3 2018/9 7,577 7,202 374 2,106,306 2,083,778 22,527 6,180 5,491 689 492,883 484,647 8,235 471 529 58 4,800 4,200 600 925 1,181 255 82,241 77,191 5,049 877 1,328 450 42,415 44,489 2,074 30 175 206 1,392,012 1,377,597 14,414 5,222 5,219 2 61,455 63,802 2,346 0 0 1,991,174 1,971,058

  27. Slide 27: ROE and OHR

    2018/3 2018/9 2018/3 2018/9 (%pt) (%pt) 17.42 15.44 1.98 17.43 15.46 1.97 8 7,720 8 8,380 8 7,788 8 8,467 50 3,435 57 2,277 50 3,422 57 1,931 11.37 11.18 0.19 4.16 4.24 0.07 9,980 9,885 8 7,788 8 8,467 1,623 1,881 210 6,298 208 3,813 7,219 6,954 8 7,720 8 8,380 ROE 3.02 2.78 0.23 3,527 1,592 2 11 6,

  28. Slide 28: Balance sheet

    2018/3 2018/9 2018/3 2018/9 49,288,314 48,464,755 823,558 179,882,759 180,374,985 492,225 480,000 420,000 60,000 1,985,285 2,688,582 703,296 8,224,153 7,719,159 504,993 13,812,123 11,164,093 2,648,030 278,566 257,978 20,587 191,481 74,100 117,380 32 29 2 2,400 3,700 1,300 4,241,524 4,448,964 207,439

  29. Slide 29: Income statement

    2017/9 2018/9 2017/9 2018/9 757,756 720,278 37,477 512 370 142 618,062 549,135 68,926 511 347 163 47,127 52,994 5,867 1 22 20 92,566 118,148 25,581 256,671 223,107 33,563 87,779 132,846 45,066 75,143 60,763 14,380 3,042 17,568 20,610 27 3,052 3,080 522,253 521,976 276 75,115 63,815 11,300 64,056 63,

  30. Slide 30: Net interest income and yields

    2018 9 5,491 0.53% 1.4% 17,500 2017/9 2018/9 3,823 3,705 118 15,407 1.2% 15,000 4,821 4,343 477 13,610 3,225 2,717 507 1.0% 12,235 12,500 11,756 997 638 359 0.8% 0.76% 10,000 0.66% 2017/9 2018/9 0.60% 0.57% 0.6% 0.53% 7,500 2,356 1,785 570 7,771 6,994 3,774 3,727 46 6,293 6,180 0.4% 5,491 5,000 3,76

  31. Slide 31: Average balances and yields

    % 2017/9 2018/9 194,888,309 482,155 0.49 194,287,761 434,376 0.44 0.04 4,051,668 7,239 0.35 6,540,168 6,259 0.19 0.16 83,794,070 384,237 0.91 78,738,136 321,288 0.81 0.10 8,484,357 732 0.01 7,562,691 640 0.01 0.00 53,043,130 11,552 0.04 49,858,459 15,124 0.06 0.01 186,230,810 99,762 0.10 186,503,726

  32. Slide 32: Interest rate spreads

    % 2017/9 2018/9 201,314,127 781,220 0.77 200,097,163 716,116 0.71 0.06 4,051,750 7,239 0.35 6,545,168 6,269 0.19 0.16 135,503,701 760,795 1.11 135,984,108 693,384 1.01 0.10 8,484,357 732 0.01 7,562,928 640 0.01 0.00 53,122,767 12,090 0.04 49,872,483 15,245 0.06 0.01 191,483,750 163,158 0.16 191,590,

  33. Slide 33: Securities balances

    2018 9 60.7 60.1 2018/3 2018/9 % % 8.3 1,392,012 67.0 1,377,597 67.0 14,414 4.0% 627,497 30.2 607,999 29.6 19,497 1 171,526 8.2 168,538 8.2 2,988 592,988 28.5 601,059 29.2 8,071 60.7 48.4 202,443 9.7 215,508 10.4 13,064 29.6% 23.5% 2 6.3 390,426 18.7 385,309 18.7 5,116 3.1% 205.3 42,415 2.0 44,489 2

  34. Slide 34: Unrealized gains and losses

    2018 9 3 3,325 2018/3 2018/9 314,589 10,035 297,264 7,956 2018/3 2018/9 1,122,457 37,699 1,127,144 34,859 1,080,835 19,120 1,083,452 21,076 336,457 11,299 333,797 8,855 202,119 3,753 215,184 9,673 390,426 2,658 385,309 1,477 151,831 1,408 149,160 1,069 5,687 460 41,622 12,892 43,692 13,322 22,861 12

  35. Slide 35: Securities by type

    2018/3 2018/9 29,103,961 958,146 27,420,170 764,581 1,683,790 193,565 261,708 763 261,708 763 2,322,529 37,283 2,012,169 23,864 310,359 13,418 32,433 8,144 32,433 7,972 171 32,433 8,144 32,433 7,972 171 31,458,923 1,003,574 29,726,482 795,654 1,732,441 207,919 2018/3 2018/9 28,790 396 82,933 2,566 5

  36. Slide 36: Securities by maturity

    2018/3 2018/9 4,162,251 1,289,201 4,369,202 1,332,273 206,950 43,071 2,286,148 1,262,041 2,335,114 1,312,021 48,966 49,979 1,256,039 27,061 1,247,417 21,040 8,621 6,021 1 2 2018 9 1,010 2018 3 1,088 2018/3 2018/9 6,341,492 110,021 7,734,865 38,533 1,393,373 71,487 4,925,816 117,531 5,984,731 114,666

  37. Slide 37: Credit ratings of holdings

    9 A 95% BBB BB B BBB 1.81% 4.71% 9.03% 0.35% BB B 0.13% 0.45 0.37 A 0.04 9.33% 0.08% 1.36 1.45 0.05 0.76% 18.42 9.83 1.20 15.54 11.29 A 69.08 70.85 86.24% 2018 9 194 1 1 2 3 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 36

  38. Slide 38: Interest rate risk positions

    2015/3 2016/3 2017/3 2018/3 2018/9 BP SP 194.2 5,599 196.5 4,804 197.5 4,330 198.9 4,384 198.3 2,180 151.7 947 141.7 356 131.5 2,433 124.6 3,800 118.8 2,061 BP BP - 2,224 - 2,504 - 3,996 - 5,718 - 3,472 BP - 3,172 - 2,147 - 1,563 - 1,918 - 1,410 42.4 4,651 54.8 5,160 66.0 6,764 74.2 8,185 79.5 4,242

  39. Slide 39: Deposits

    2018 9 180.3 2018/3 2018/9 179.8 180.3 180 179.4 179.4 73.7 77.0 3.2 177.8 14.4 15.4 0.9 58.9 61.2 2.2 170 0.3 0.3 0.0 105.9 103.2 2.7 8.6 7.8 0.8 160 97.2 95.3 1.9 0.1 0.1 0.0 0 150 179.8 180.3 0.4 16/3 17/3 17/9 18/3 18/9 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 38

  40. Slide 40: Deposit trends

    2018 9 2 5,208 12,000 10,540 10,428 2017/9 2018/9 10,000 629 620 8 515 510 5 8,000 4,196 4,222 25 6,000 3,018 3,036 18 5,299 5,211 5,208 4,000 28 8 20 302 298 4 2,000 385 366 19 5,211 5,208 2 0 2016 17/3 2017 18/3 2018 19/3 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 39

  41. Slide 41: Loan balances

    % 2017/9 2018/9 62,961 12.08 62,076 11.91 885 51,544 9.89 51,029 9.79 514 11,417 2.19 11,046 2.12 371 419,629 80.51 422,213 81.05 2,584 301,824 57.91 303,689 58.30 1,865 2,839 0.54 809 0.15 2,030 30,269 5.80 29,827 5.72 442 6,336 1.21 6,549 1.25 213 25,694 4.93 32,243 6.18 6,548 19,575 3.75 15,791 3

  42. Slide 42: Capital adequacy ratio

    2018 9 15.44% % % 2018/3 2018/9 60 87,720 88,380 659 503,435 572,277 68,842 50 475,747 544,690 68,943 40 17.42 15.44 1.98 38.42 30 % 26.38 2018/3 2018/9 22.22 20 17.42 87,788 88,467 679 15.44 503,422 571,931 68,508 10 475,734 544,344 68,609 17.43 15.46 1.97 0 15/33 2015 2016 16/3 3 2017 17/33 2018 1

  43. Slide 43: Capital adequacy details

    % 2018/3 2018/9 8,801,141 8,866,463 65,322 29,070 28,431 638 8,772,071 8,838,032 65,960 50,343,515 57,227,775 6,884,260 47,574,709 54,469,063 6,894,353 8 2,768,805 2,758,712 10,093 8 17.42 15.44 1.98 % 2018/3 2018/9 9,980 9,885 94 1,623 1,881 257 7,219 6,954 265 87,720 88,380 659 11.37 11.18 0.19 1

  44. Slide 44: Capital adequacy details (consolidated)

    % 2018/3 2018/9 8,807,898 8,875,209 67,311 29,075 28,437 638 8,778,822 8,846,771 67,949 50,342,277 57,193,112 6,850,835 47,573,471 54,434,400 6,860,928 8 2,768,805 2,758,712 10,093 8 17.43 15.46 1.97 % 2018/3 2018/9 9,980 9,885 94 1,623 1,881 257 7,219 6,954 265 87,720 88,380 659 11.37 11.18 0.19 1

  45. Slide 45: Initiatives

    2016 4 2018 10 1 • • • 3 1/3 • 3 3 1 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 44

  46. Slide 46: Employee initiatives

    11 7 2018 10 1  12  98.71 2017 6 2018 5 11 7 4 3 4 3 5 4 Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 45

  47. Slide 47: Initiatives list

    2016 5 • • • • Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 46

  48. Slide 48: LGBT and diversity initiatives

    1 LGBT LGBT PRIDE  2015 2016 2017  PRIDE 15 25 24 work with Pride  337 364 385 LGBT 352 389 409 2016  2021 4 1 14     15% 14% 14.7% 15% 13.8% 13.8% 12.7% 12.9% 12% 11.5% 10.9% 12% 8.9% 9% 9% 6% 6% 3% 3% 0% 0% 15/4 16/4 17/4 18/4 21/4 15/7 16/7 17/7 18/7 / / Copyright © 2018 JAPAN POST BANK C

  49. Slide 49: CSR and environmental data

    CSR SRI MSCI WIN Euronext Vigeo Eiris World Index 120 2017 63 109 2017 13 5 1 2013 2017 5 1.1 Visa mijica t-CO2 kl/m2 80,000 0.10 70,191 1 t-CO2 60,472 60,000 58,614 55,516 kl/m2 51,706 2 49,748 51,666 51,062 0.06903 0.06297 40,000 0.06001 0.05 1 0.05295 0.05129 0.05044 0.05150 0.05068 20,000 2 0 0.

  50. Slide 50: Financial data history

    2018/3 2019/3 2014/3 2015/3 2016/3 2017/3 2018/3 4 9 4 9 15,687 16,347 14,520 14,102 14,623 7,577 7,202 1 14,702 15,407 13,610 12,235 11,756 6,180 5,491 926 892 911 866 964 471 529 2 10,960 11,147 10,661 10,561 10,450 5,222 5,219 0 0 0 4,726 5,199 3,858 3,540 4,173 2,354 1,983 924 494 961 879 823 21

  51. Slide 51: Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved.

    Copyright © 2018 JAPAN POST BANK CO., LTD. All Rights Reserved. 50

Japan Post Bank — H1 FY2019/3 Earnings Presentation on 6ix