Accelerating Value Creation for Shareholders
Further reinforcement of competitive advantages
Financial consulting business for individuals
SMFG
Related Profits (Investment trusts and pension-type insurances)
Mortgage loans
(Billions of yen)
(Trillions of yen)
2.5
(Trillions of yen)
60
Origination (left scale)
10
Total balance of residential mortgage (right scale)
40
20
12.4
15.4
0
FY01 result
FY02 result
Pension-type insurances
2.0
17.1
Investment trusts
1.5
1.0
23.8
9
0.5
7
FY03 result
FY04 plan
FY01 result
FY02 result
FY03 result
FY04 plan
Peer comparison (investment trusts and pension-type insurances)
(Trillions of yen)
Peer comparison (balance of mortgage loans***)
(Billions of yen)
(Trillions of yen)
Balance of investment trusts*
2.01
2.0
Accumulated sales amount of
pension-type insurances**
12.7
00
13
600
12.3
12.1
482.9
02/3
03/3
04/3
1.5
1.0
0.5
0.0
SMBC
MTFG Mizuho
UFJ
500
11
400
9
300
200
7
100
5
0
SMBC
BTM
Mizuho
SMBC
UFJ
Mizuho
UFJ
*Source: the Nikkin Toushin Nenkin Jouhou **Source: company estimate based on newspapers, etc. ***Source: each company's financial reports, etc.
MTFG
5
Second, in business for individuals, we have several competitive business
models based on the concept of consulting. The business models are
sales of investment trusts and pension-type insurances, and mortgage
loans, and these businesses have been growing steadily, as you can see.
Especially, profit from sales of investment trusts and pension type
insurances exceeded JPY40 billion in fiscal 2003, becoming one of the
core businesses of our profit base.
In each of these businesses, you can see our high competitive advantage
if you compare to our peers.
Moreover, further deregulation in Japan will enable us to expand our
business lines even more. For example, we will be able to handle securities
related products after lifting of the ban on securities intermediation which
is scheduled in this December.
We intend to firmly grasp this business opportunity, for example by
utilizing our platform for consulting business for individuals, and are now
making preparations to enter the business as soon as the ban is lifted.View entire presentation