Investor Presentaiton
How to Increase the Corporate Value:
1. Summary
2. How to Increase
Corporate Value
3. Appendix
4. Financial Data
Analysis & Assessment (2) / Policies, Goals, and Initiatives Towards Improvement (1)
The Bank's ROE is in the mid-3% range, and has consistently remained below the cost of shareholders' equity (approximately 5%)
as calculated using the Capital Asset Pricing Model (CAPM).
While complying with business regulations based on the Postal Service Privatization Act and fulfilling our responsibility to provide
universal financial services*1, as a 1st step, we will work to achieve ROE that exceeds the cost of shareholders' equity
(approximately 5%), and then aim to achieve higher ROE in the medium-to long-term.
Trends in ROE*2 and Roadmap to Achieve Targets
7%
6%
5%
4%
2%
1%
do do do do do do do go
First, aim for a level of
ROE exceeding the cost
of shareholders' equity
Cost of Shareholders' Equity: approx. 5%
3.80%
3.44%
-3.50%
2.97%
3.03%
3.06%
(Plan)
3%
0%
FY18
FY19
FY20
FY21
FY22
FY23...
Aim to achieve a
higher ROE in
the medium-to
long-term
Efforts to date to improve ROE
1st Step
- Investment in risk assets increased (net interest income, etc. from risk assets
approximately doubled over the past seven years) in a difficult environment where
interest income from Japanese government bonds, etc. continues to decline due to
persistently low interest rates in Japan.
-Through efforts to enhance the sophistication of the retail business model, increased
service revenues by JPY 56.6bn over seven years and reduced operating expenses by
JPY 139.2bn.
Next Step
We are currently considering a revision of the Mid-term
Plan (FY2022/3-FY2026/3), and plan to disclose the
specific ROE performance targets, achievement timeline,
measures, etc. in May 2024, along with the revised Mid-
term Plan.
*1 In accordance with laws and regulations, Japan Post Bank pays contributions to the Organization for Postal Savings, Postal Life Insurance and Post Office Network as part of the costs required to maintain the post
office network, which are indispensable costs for ensuring the provision of universal financial services (the amount of contributions to be paid in FY2024/3 is JPY 243.6bn).
*2 Consolidated and shareholders' equity basis
JP JAPAN POST BANK
BANK
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