Investor Presentaiton
Restructuring of the Yen Interest-rate Portfolio
1. Summary
2. How to Increase
Corporate Value
3. Appendix
4. Financial Data
(5) Impact of Rising Yen Interest Rates on P/L (Simple Illustration)*1
Due to rising yen interest rates, the Bank's P/L has improved (Increased interest received > Increased foreign currency funding
costs).
Restructuring of
the Yen Interest-rate Portfolio (Example)
Increase in long-term interest rates
:
Annual net income
(abandonment of the YCC policy) increase of JPY 100bn
(In case of an additional investment of JPY 10tn in 10-year bonds yielding 1%)
New Investments :
Improvement in investment yield x Increase in investment amount
Existing Holdings Bulk is in fixed bonds, and the impact is neutral
The Bank's BS (non-consolidated)
Total assets JPY 230tn (as of Sep. 30, 2023),
JGBs*2
JPY 40tn
Due from banks, etc.
JPY 63tn
Deposits
JPY
194tn
Ordinary
Deposits
JPY
108tn
More than
50% are
sticky core
deposits.
If deposit interest rates
rise, interest payments will
increase. (Impact on both
exisiting deposits and
new deposits. However,
interest rate spreads
would still be secured due
to the lag behind the rise
in market interest rates)
Lifting of negative interest rate policy.
(increase in short-term interest rates)
Annual net income
increase of JPY 50bn
(In case of a 10bp rise in yen short-term interest rates)
Foreign securities³
JPY 85tn
TEIGAKU
deposits
JPY 68tn
Decrease in foreign currency funding costs*4
- Yen short-term interest receivables position is approx. JPY 50tn
→Immediate improvement in yields
Others
JPY 41tn
Others
Others /
Net assets
JPY 36tn
If deposit interest rates
rise, interest payments will
increase. (Impact on only
new deposits (including
reposits). However,
interest rate spreads
would still be secured due
to the lag behind the rise
in market interest rates)
*1 Theoretical impact on the Bank's P/L from potential movements of market environment. Actual impact may differ due to changes in market conditions and the Bank's ALM policy.
*2 Include JGBs in money held in trust.
*3 Include real estate funds and direct lending funds in money held in trust.
*4 Investment trusts raise capital within the fund, and foreign currency funding costs depend on differences in yen and foreign interest rates.
EP JAPAN POST BANK
BANK
Copyright© JAPAN POST BANK All Rights Reserved.
14View entire presentation