JAPAN POST BANK : Selected Financial Information for the Fiscal Year Ended March 31, 2024

May 15, 2024 at 07:44 am EDT

Selected Financial Information

For the Fiscal Year Ended March 31, 2024

May 15, 2024

Contents

Financial Highlights

Financial Data

１．Results of Operations	Consolidated	・・P.	2
２．Trend of Net Interest Income and Interest	Non-consolidated	・・P.	3
Rate Spread
３．Net Fees and Commissions	Non-consolidated	・・P. 4
４．Trend of General and Administrative	Non-consolidated	・・P. 5
Expenses
５．Financial Conditions	Non-consolidated	・・P.	6
６．Asset Management Status	Non-consolidated	・・P. 7
７．Unrealized Gains (Losses) on Financial	Non-consolidated	・・P. 8
Instruments	Consolidated	・・P.	9
８．Trend of Capital Adequacy Ratio
(Reference) Trend of Balance of Risk	Non-consolidated	・・P.10
Assets
(Reference) Progress of Medium-Term
Earnings Forecasts and Dividends Forecast for the Fiscal Year
Management Plan
Ending March 31, 2025
１．Earnings Forecasts	Consolidated	・・P.12
２．Dividends Forecast	Consolidated	・・P.13
(Reference) Assumptions for Earnings	Consolidated	・・P.14
Forecasts	Consolidated
(Reference) Revision of Medium-term	・・P.15
Management Plan

【Consolidated subsidiaries, etc.】

１．Summarized Balance Sheets	Non-consolidated	・・P.17
２．Income Analysis	Non-consolidated	・・P.18
３．Net Interest Income	Non-consolidated	・・P.19
４．Interest Rate Spread	Non-consolidated	・・P.20
５．Average Balance, Interest, and Earnings	Non-consolidated	・・P.21
Yield of Interest-Earning Assets and
Interest-Bearing Liabilities
６．Asset Management Status	Non-consolidated	・・P.23
７．Unrealized Gains (Losses) on Financial	Non-consolidated	・・P.24
Instruments
８．General and Administrative Expenses	Non-consolidated	・・P.26
９．Loans	Non-consolidated	・・P.27
10．Balances by Type of Deposit	Non-consolidated	・・P.28
11．Employees' Retirement Benefits	Non-consolidated	・・P.29
12．Deferred Tax Assets/Liabilities	Non-consolidated	・・P.30
13．Problem Assets Disclosed under the	Non-consolidated	・・P.31
Financial Reconstruction Act
14．Reserve for Possible Loan Losses	Non-consolidated	・・P.31
．	Non-consolidated/	・・	P.32
15 Capital	Consolidated

(Reference) Securitized Products Exposure	Non-consolidated	・・P.33

Consolidated subsidiaries

13 companies Principal companies:

JAPAN POST BANK LOAN CENTER Co., Ltd. Japan Post Investment Corporation

Affiliates accounted for by the equity method

ATM Japan Business Service, Ltd. JP Asset Management Co., Ltd.

Note： All Japanese yen figures in the financial statements of JAPAN POST BANK Co., Ltd. (the "Bank") and its consolidated subsidiaries (the "Group") have been rounded down. Accordingly, the total of each account may not be equal to the combined total of individual items.

Financial Highlights

1. Results of Operations

Consolidated

Net income attributable to owners of parent increased by ¥31.0 bn year on year to ¥356.1 bn, which was record high profits in our history as a listed company.

			(¥bn, %)
	For the fiscal year ended	Increase
	March 31,	March 31,	(Decrease)
Consolidated gross	2023 (A)	2024 (B)	(B) - (A)
1,056.3	733.6	(322.6)
operating profit

Net interest income	796.3	715.7	(80.6)
Net fees and	147.8	153.0	5.2
commissions
Net other operating	112.1	(135.1)	(247.2)
income (loss)
Gains (losses) on	200.0	(117.4)	(317.4)
foreign exchanges
Gains (losses) on	(88.0)	(15.6)	72.4
bonds
General and administrative	926.3	929.1	2.8
expenses (*)
Provision for general reserve	－	0.0	0.0
for possible loan losses
Consolidated net operating	130.0	(195.5)	(325.5)
profit

Non-recurring gains	325.5	691.6	366.0
(losses)
Net ordinary income	455.5	496.0	40.4
Net income attributable to	325.0	356.1	31.0
owners of parent

【Reference**】
ROE	3.44%	3.74%	0.29 %
(based on shareholders' equity)

OHR (basis including gains	67.15%	65.39%	(1.75)%
(losses) on money held in trust)

- Net interest income for the fiscal year ended March 31, 2024 decreased by ¥80.6 bn year on year, mainly due to an increase in foreign currency funding costs.
  Net fees and commissions increased by ¥5.2 bn year on year. Net other operating income decreased by ¥247.2 bn year on year, due to a decrease in gains (losses) on foreign exchanges.
- General and administrative expenses increased by ¥2.8 bn year on year, due to an increase in non-personnel expenses.
- Non-recurringgains increased by ¥366.0 bn year on year, due to an increase in gains on sales of stocks associated with operations for risk controls and a contribution of gains related to private equity funds and real estate funds.
- Net ordinary income increased by ¥40.4 bn year on year, and equated to 105.5% of the full-year earnings forecast of ¥470.0 bn.
- Net income attributable to owners of parent equated to 106.3% of the full-year earnings forecast of ¥335.0 bn.
General and administrative expenses exclude non-recurring losses.
Calculation for financial targets in the Medium-term Management Plan (FY2022/3 - FY2026/3) ROE = net income attributable to owners of parent / [(sum of total net assets at the beginning
and the end of the period) / 2] x 100
OHR = general and administrative expenses / (net interest income, etc. + net fees and commissions)

x 100

Net interest income, etc. = interest income - interest expenses (including gains (losses) on sales, etc.)

2. Trend of Net Interest Income and Interest Rate Spread Non-consolidated

Net interest income decreased by ¥69.5 bn year on year to ¥715.5 bn and interest rate spread was 0.30% for the fiscal year ended March 31, 2024.
Net interest income decreased mainly due to an increase in foreign currency funding costs associated with a rise in overseas interest rates.

													(¥bn)
											For the fiscal year ended	Increase
			Net interest income（right hand-scale）	(¥bn)					March 31,	March 31,	(Decrease)
1.2%			1,147.5			1,200	Net interest income			2023 (A)	2024 (B)	(B) - (A)
	Interest rate spread						785.1	715.5	(69.5)
					Interest income			1,232.4	1,396.9	164.5
								Interest on Japanese	235.4	190.2	(45.2)
	976.8							government bonds
1.0%					1,000
961.8					Interest on foreign		917.6	1,113.4	195.7
					securities
								Strategic investment	182.9	130.4	(52.4)
								areas(*)

0.8%				785.1		800	Interest expenses			447.2	681.3	234.1


					715.5	【(Reference) Trend of Net Interest Income and Non-recurring
								Gains (Losses) related to Strategic Investment Areas】
0.6%			0.52%			600	(¥bn)
	0.47%					400	Non-recurring gains (losses)(**)	329.4
	0.45%

						300
										191.5	146.5	216.4
0.4%				0.34%		400		Net interest income(*)
			0.30%	200
									96.3		85.9

							100	36.6		57.8	182.9

									13.5	95.1	130.4
0.2%						200		23.3 13.3
					0	44.3
							FY2020/3	FY2021/3	FY2022/3	FY2023/3	FY2024/3

												（Fiscal year）
0.0%						♦Net income related to strategic investment areas contribute to
FY2020/3	FY2021/3	FY2022/3	FY2023/3	FY2024/3	0	non-recurring gains (losses) in addition to net interest income.
	*	Private equity funds (profit distribution) and real estate funds (debt), etc.
					（Fiscal year）
					** Private equity funds (redemption gains (losses)) and real estate funds (equity・debt), etc.

3. Net Fees and Commissions

Non-consolidated

Net fees and commissions for the fiscal year ended March 31, 2024 increased by ¥5.1 bn year on year to ¥151.5 bn.

Trend of Net Fees and Commissions

■ Exchange and settlement transactions ■ ATMs ■ Investment trusts ■ Others

（¥bn）			146.3	151.5
150				12.7
128.8	127.9	127.4	10.4

	12.2
	8.5	9.7	7.2	11.8
100	21.7	14.6	13.6	32.8	37.3
19.0	20.1	22.7


50	79.4	83.4	83.7	91.1	89.2

0
FY2020/3	FY2021/3	FY2022/3	FY2023/3	FY2024/3

【Reference】				(Fiscal year)

Breakdown of Net Fees and Commissions	(¥bn)
		For the fiscal year ended	Increase
		March 31,	March 31,	(Decrease)
		2023 (A)	2024 (B)	(B) - (A)
Net fees and commissions	146.3	151.5	5.1
relating to
	Exchange and settlement	91.1	89.2	(1.9)
	transactions
	ATMs	32.8	37.3	4.4
	Investment trusts(*)	11.8	12.2	0.3
	Others	10.4	12.7	2.3

* Investment trusts include Yucho Fund Wraps(discretionary investment contract services).

Results of Investment Trusts and Yucho Fund Wraps Sales

For the fiscal year ended	Increase
March 31,	March 31,	(Decrease)

1,500

1,000

500

Number of accounts	KPI
registered in the	(revised)
Bankbook app	1,600

	(ten thousands)	90

	1,040	60
	745

481		30

Number of NISA	KPI
Accounts	(revised)
(ten thousands)	94
73

52	60

		2023 (A)	2024 (B)	(B) - (A)
Number of contracts (thousands)	5,772	7,799	2,027
Sales amount (billions of yen)	247.3	435.7	188.4
				(¥bn)

		As of	As of	Increase
		March 31,	March 31,	(Decrease)
		2023 (A)	2024 (B)	(B) - (A)
Balance	2,405.1	2,766.3	361.2

	Investment trusts	2,387.1	2,664.4	277.3

0		0

Yucho Fund Wraps

17.9

101.8

83.8

4. Trend of General and Administrative Expenses

Non-consolidated

General and administrative expenses for the fiscal year ended March 31, 2024 increased by ¥2.6 bn year on year to ¥924.8 bn, due to an increase in expenses associated with core systems renewal.

						For the fiscal year ended	(¥bn)
						Increase
(¥bn)						March 31,	March 31,	(Decrease)
1,100						2023 (A)	2024 (B)	(B) - (A)
				Personnel expenses (*)	113.7	111.3	(2.4)

					Salaries and allowances	92.4	90.2	(2.2)
					Non-personnel expenses	772.9	778.6	5.7
					Commissions on bank	340.0	316.0	(24.0)
1,018.3					agency services, etc. paid
1,008.0				to JAPAN POST Co., Ltd.
				Contributions paid to the
1,000					Organization for Postal	230.7	243.6	12.9
	979.0			Savings, Postal Life

				Insurance and Post Office

					Network
					Deposit insurance
					expenses paid to Deposit	27.5	27.9	0.4
			922.1	924.8	Insurance Corporation of

					Japan
					Depreciation and	34.1	42.4	8.3
900					amortization
				13.6	17.2	3.5
					IT expenses
					Taxes and dues	35.4	34.8	(0.5)
					Total	922.1	924.8	2.6
					* Personnel expenses include non-recurring losses.
					【(Reference) Revised Financial target in the Medium-term Management Plan
							(FY2022/3 - FY2026/3)】(¥bn)
8000							For the fiscal year	For the fiscal
FY2020/3	FY2021/3	FY2022/3	FY2023/3	FY2024/3			ended	year ending
		March 31, 2024	March 31, 2026
				(Fiscal year)
						(Result)	(Target)

General and administrative expenses	(81.5)	(69.0)
(compared to FY2021/3, consolidated)

5. Financial Conditions

Non-consolidated

Total assets were ¥233.8 tn as of March 31, 2024.
As of March 31, 2024, Deposits were ¥192.8 tn, Liquid deposits were ¥124.3 tn, Fixed-term deposits were ¥68.3 tn.

Overview of Balance Sheet

Total assets ¥233.8tn (As of March 31, 2024)

SecuritiesDeposits

¥146.4tn

¥192.8tn

JGBs ¥43.8tn

Foreign securities, etc. ¥86.6tn

Others(*)

¥87.3tn¥31.3tn

Money held in trust ¥6.1tnNet assets

Loans ¥6.8tn	¥9.6tn

* Please refer to page 17 "Summarized Balance Sheets" .

Trend of Deposit Balance

(¥tn)		193.4	194.9	192.8
200	189.5

150	Liquid deposits

101.3	112.2	119.6	124.3

100

50		Fixed-term deposits
88.1	81.0	75.2
		68.3


0
FY2021/3	FY2022/3	FY2023/3	FY2024/3

（Fiscal year-end）

6. Asset Management Status

Non-consolidated

Included in investment assets as of March 31, 2024, JGBs increased by ¥5.7 tn from March 31, 2023, to ¥43.8 tn and foreign securities, etc. were ¥86.6 tn.

(¥bn)

(¥tn)

250

200

150

100

		220.5	229.6	226.3	231.0		Short-term
		13.2				13.7		investments
207.5	11.5			13.1			and others


11.3								57.8		Due from
		60.6		66.6		68.2			banks, etc.

51.4								Loans

4.5	4.9	5.5	4.6	5.8	4.4	6.5	5.6	6.1 6.8	Money held
				in trust

65.6		71.1		74.1		78.3		86.6		Foreign

									securities, etc.

15.9		16.5		16.1				15.9	Japanese local

						16.2		government bonds,
								corporate bonds,

etc.

53.6 50.4 49.2 38.1 43.8 JGBs

FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3

（Fiscal year-end）

Categories	As of	%	As of	%	Increase
March 31,	March 31,		(Decrease)
	2023 (A)		2024 (B)		(B) - (A)

Securities	132,769.4	58.6	146,459.3	63.3	13,689.9
	Japanese government	38,114.7	16.8	43,862.0	18.9		5,747.3
	bonds

	Japanese local
	government bonds,	16,297.4	7.1	15,992.3	6.9	(305.0)
	corporate bonds,

	etc.(*)
	Foreign securities, etc.	78,357.2	34.6	86,604.8	37.4	8,247.5
		Foreign bonds	26,139.0	11.5	29,326.7	12.6		3,187.7
		Investment trusts (**)	52,110.2	23.0	57,156.0	24.7		5,045.8
Money held in trust	6,564.7	2.8	6,163.5	2.6		(401.1)
	Domestic stocks	1,857.6	0.8	1,127.5	0.4		(730.1)
Loans	5,604.3	2.4	6,848.3	2.9		1,244.0
Due from banks, etc. (***)	68,283.5	30.1	57,872.3	25.0		(10,411.2)
Short-term investments	13,158.3	5.8	13,714.4	5.9		556.0
and others (****)

Total	226,380.4	100.0	231,058.0	100.0	4,677.5

"Japanese local government bonds, corporate bonds, etc." consists of Japanese local government bonds, short-term corporate bonds, Japanese corporate bonds and Japanese stocks.
Investment trusts are mainly invested in foreign bonds. Investment trusts include private equity funds, etc.
"Due from banks, etc." consists of negotiable certificates of deposit, Bank of Japan deposits and monetary claims bought.
"Short-terminvestments and others" consists of call loans and receivables under resale agreements, etc.

7. Unrealized Gains (Losses) on Financial Instruments

Non-consolidated

Net unrealized gains (losses) on financial instruments (available-for-sale) after taking into consideration gains (losses) from hedge accounting were ¥122.4 bn as of March 31, 2024 (before application of tax effect accounting), decreased by ¥91.5 bn from March 31, 2023.
Net unrealized gains (losses) increased by ¥678.9 bn, compared to ¥(556.4) bn as of September 30, 2023.

			As of March 31, 2023 (A)	As of March 31, 2024 (B)
			Amount on the	Net unrealized	Amount on the	Net unrealized
			gains (losses) /	gains (losses) /
			balance sheet /	balance sheet /
			Net deferred gains	Net deferred gains
			Notional amount	Notional amount
			(losses)	(losses)

Available-for-sale	112,766.0	1,117.3	115,528.0	1,947.5
	Securities (a)	106,201.2	1,216.1	109,364.4	3,458.9
		Japanese government bonds	23,072.1	(423.8)	23,312.9	(881.5)
		Foreign bonds	22,365.2	1,476.1	22,408.5	3,393.0
		Investment trusts (*)	52,110.2	184.0	57,156.0	988.1
		Others	8,653.6	(20.1)	6,486.9	(40.7)
	Effect of fair value hedge		(1,306.0)		(2,256.2)
	accounting (b)
	Money held in trust (c)	6,564.7	1,207.2	6,163.5	744.7
		Domestic stocks	1,857.6	1,104.9	1,127.5	732.7
		Others	4,707.0	102.2	5,036.0	12.0
	Derivatives for which deferred	18,078.0	(903.3)	17,353.0	(1,825.0)
hedge accounting is applied (d)
Total (a) + (b) + (c) + (d)		214.0		122.4

(¥bn)

Increase (Decrease)

- (A)
Net unrealized gains (losses) /

Net deferred gains

(losses)

830.2

2,242.8

(457.6)

1,916.9

804.1

(20.5)

(950.1)

(462.4)

(372.1)

(90.2)

(921.7)

(91.5)

Investment trusts are mainly invested in foreign bonds. Net unrealized gains on investment trusts include those of private equity funds (¥1,172.6 bn and ¥1,050.0 bn as of March 31, 2024 and 2023, respectively).

【Reference】

As of September 30, 2023 (A)

(¥bn)

As of March 31, 2024 (B)		Increase (Decrease)
	(B) - (A)

Total net unrealized gains (losses)

(556.4)

122.4678.9

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Disclaimer

Japan Post Bank Co. Ltd. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:39:16 UTC.

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-31 am EDT			5-day change	1st Jan Change
1,553 ^JPY	+1.54%		+2.14%	+8.15%

Apr. 24	Japan Post Bank Reveals Close to 1.2 Million Transfer Delayed Due to System Glitch	MT
Mar. 21	Japan Post firms say BOJ's new policy will not alter portfolios	RE

Japan Post Bank Reveals Close to 1.2 Million Transfer Delayed Due to System Glitch	Apr. 23	MT
Japan Post firms say BOJ's new policy will not alter portfolios	Mar. 21	RE
The BOJ won't sway Japan's trillions of investment abroad	Mar. 18	RE
INSTANT VIEW-Japan's Nikkei hits record high	Feb. 21	RE
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Toshiba says JIP's $14 bln tender offer set to succeed	23-09-20	RE
Toshiba Corp says it is forecasted that tender offer will be successful	23-09-20	RE
Certain Common Stock of JAPAN POST BANK Co., Ltd. are subject to a Lock-Up Agreement Ending on 20-SEP-2023.	23-09-19	CI
Tokai Tokyo Financial Holdings, Inc. Announces Collaboration Between Tokai Tokyo Digital Platform Co., Ltd. and Japan Post Bank	23-07-25	CI
JAPAN POST BANK Co., Ltd. Reports Earnings Results for the Full Year Ended March 31, 2023	23-05-15	CI
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JAPAN POST BANK Co., Ltd.'s Equity Buyback announced on February 27, 2023, has closed with 72,418,800 shares, representing 1.93% for ¥79,999.99 million.	23-04-26	CI
Tranche Update on JAPAN POST BANK Co., Ltd.'s Equity Buyback Plan announced on February 27, 2023.	23-04-13	CI
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Japan Post Bank prices its stock offering at 1,131 yen apiece	23-03-13	RE
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JAPAN POST BANK Co., Ltd.'s Equity Buyback announced on February 27, 2023, has closed with 59,523,800 shares, representing 1.59% for ¥69,999.99 million.	23-02-28	CI

	1st Jan change	Capi.
JAPAN POST BANK CO., LTD.	+8.15%	35.72B
AGRICULTURAL BANK OF CHINA LIMITED	+8.64%	206B
PT BANK CENTRAL ASIA TBK	-1.60%	70.19B
ANZ GROUP HOLDINGS LIMITED	+8.99%	56.34B
INDUSTRIAL BANK CO., LTD.	+10.36%	51.32B
CRÉDIT AGRICOLE S.A.	+16.13%	48.95B
CHINA CITIC BANK CO., LTD.	+29.62%	47.48B
QATAR NATIONAL BANK (Q.P.S.C.)	-18.33%	34.25B
INVEST BANK	-96.60%	32.24B
FIFTH THIRD BANCORP	+8.55%	25.61B

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