Investor Presentaiton
1. Summary
2. How to Increase
Corporate Value
3. Appendix
4. Financial Data
Executive Summary (3) Restructuring of the Yen Interest-rate Portfolio
Yen interest rates have risen following the Bank of Japan's monetary policy tweaks in July and October 2023.
Within FY2024/3 Q2, we reverse the balance of JGBs, which has been continuously declining since the BOJ adopted a negative
interest rate policy in 2016, and turn into a phase of earnings expansion.
(trillion yen)
100
80
60
60
40
40
Balance of JGBs*1
Market Business Earnings *2
(billion yen)
To Reverse
& Expand
To Reverse
& Expand
1,500
Shrank to approx. 1/5 in 7 years
931.3
Shrank by approx. 50% in 7 years
More than
7Y to 10Y
Over 10Y
More than
3Y to 7Y
1,000
500
214.4
Yen interest rate assets'
1,009,0
net interest income, etc.
20
20
More than
1Y to 3Y
$22.0
Risk assets'
net interest income,
1Y or less
etc.
0
0
End
End
End
End
End
End
End
FY15
FY17
FY19
FY21
FY22
Mar.
Mar.
Mar.
Mar.
Mar.
Jun.
Sep.
16
18
20
22
23
23
23
(trillion yen)
JGB Balance
82.2
62.7
53.6
49.2
38.1
37.6
38.9
More than
8.1
5.8
4.6
6.5
1.3
0.7
1.5
7Y to 10Y
(Ref.)
JGB 10Y yield (0.04%)
0.04%
0.03%
0.21%
0.38%
0.42%
0.77%
Reverse and expand yen interest rate assets' net interest
income, etc.
Pursue sustained growth of risk asset's net interest income,
etc., which had expanded under the low yen interest rate
environment
Source: JGB interest rate information - Ministry of Finance Japan
*1 Except JGBs in money held in trust.
*2 Non-consolidated and management accounting basis. "Risk assets" consist of Japanese local government bonds, corporate bonds, loans, stocks (money held in trust), foreign securities, and strategic investment
areas, etc.
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