Investor Presentaiton
Analysis and Evaluation of Current Situation/Initiatives for Improvement
Japan Post Holdings' ROE and Cost of Equity
➤ Using CAPM based on the most recent data, the cost of equity is estimated to be approx. 5%.
The Company's ROE is below the cost of equity.
We aim for a level of ROE that exceeds the cost of equity.
Trends of the Company's ROE (* 1,2) and the cost of equity
(%)
6.0
5.5
Cost of equity: Approx. 5%
5.0
4.5
4.5
4.5
4.7
4.4
4.0
3.9
3.5
3.0
2.5
In FY2023, ROE declined due to a decline in
consolidated net income from the previous fiscal year
resulting from a decrease in the shareholding ratio of
Japan Post Bank shares, a group company (from
approx. 89% to approx. 60%).
2.7
2.0
FY18
FY19
FY20
FY21
FY22
FY23
(Forecast)
Increasing
ROE
Specific ROE and other targets, timing for
achieving them, details of initiatives, etc. will
be discussed while reviewing the Medium-
term Management Plan during the current
fiscal year, and will be disclosed in FY2024.
FY24...
1 ROE on a shareholders' equity basis not affected by net unrealized gains (losses) on available-for-sale securities, taking into consideration our banking business
characteristics
X2 Calculated by dividing net income attributable to Japan Post Holdings by the average shareholders' equity during the period (excluding non-controlling interests and net
unrealized gains (losses) on available-for-sale securities from net assets) and rounding to the first decimal place
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