Message from the President

JAPAN POST BANK will pursue a growth strategy that is distinct from that of other banks by leveraging the Bank’s unique strengths.

In April 2024, I was appointed Director, President, and Representative Executive Officer of JAPAN POST BANK.
I would like to extend my deepest sympathies to the victims, their families, and all those affected by the Noto Peninsula Earthquake of 2024.

In addition to setting a new net income record since our public listing and achieving our target for the year, the Bank’s earnings results for FY 2023 have allowed us to achieve our FY 2025 target ahead of schedule. In addition, the number of account holders of the Yucho Bankbook App service has exceeded the 10-million mark, another target set for FY 2025. In addition to these milestones, we are making consistent progress on the KPIs of our strategies.

In light of the notable shifts in the business landscape surrounding the banking sector, including the impact of rising interest rates in Japan and abroad, the unprecedented advancement of digitalization, and the growing emphasis on the cost of capital and share price in managing business, we announced a revision of our Medium-Term Management Plan in May 2024, which will conclude in FY2025.

The key revisions are as follows: firstly, the net income target for the final year of the Medium-term Management Plan has been revised upwards by 50 billion yen to "400 billion yen or more". Following FY2023, our objective is to achieve the highest net income since our listing for three consecutive years in FY2024 and FY2025. While maintaining the fundamental direction of our business strategy, we have revised the framework to focus on three business strategies (Retail Business, Markets Business, and Σ(Sigma) Business) that leverage JAPAN POST BANK’s distinctive strengths, and by bolstering the management framework that underpins these strategies, we will develop a sustainable business model.

In our Retail Business, I would like to accelerate our strategy of creating complementarity between physical and digital access and to take on the challenge of building a new retail business.

In particular, we will pursue an ambitious strategy to expand the user base of Yucho Bankbook App services through a combination of digital and traditional channels. Additionally, the application will be leveraged as a platform for generating new revenue streams through the utilization of data to direct customers toward suitable services, including encouraging them to visit our physical branches. Moreover, in the asset formation business, the Bank will transition to digital and remote channels in response to the growing demand for digital transactions. JAPAN POST BANK intends to reinforce its guidance on convenient digital and remote channels while promoting the appeal of NISA and savings and investment products by leveraging its approximately 20,000 teller locations nationwide which is a key competitive advantage.

In the Markets Business, we had been expanding our portfolio of risk assets, mainly foreign securities. However, in light of the recent upward trend in domestic interest rates, we intend to proactively shift investments from Bank of Japan deposits to Japanese Government Bonds (JGBs). Our goal is to construct an optimal portfolio that consists of yen interest rate assets, such as Japanese Government Bonds (JGB), along with risk assets. This will allow us to improve return relative to its risk and enhance stress tolerance.

In regards to the ∑ Business, our objective is to position it as "a corporate business that creates the future of society and the community through investment." We will commence this venture in earnest during this fiscal year. In collaboration with regional financial institutions, we will establish a "co-creation platform" to drive societal and regional development, and promote "GP business that is unique to JAPAN POST BANK." This will be spearheaded by JAPAN POST BANK CAPITAL PARTNERS Co., Ltd., a wholly owned subsidiary established in May 2024. In collaboration with select companies, we will invest in business succession and revitalisation companies, venture investments, and ESG investments. Additionally, the company will provide sourcing and marketing support services.

To promote these three businesses, we consider "human assets" to be one of our most valuable resources and will implement human resource strategies aligned with our overall business strategy. Furthermore, we will invest in IT to drive growth and enhance our business operations, while also strengthening our system infrastructure. Furthermore, we will enhance our management framework by leveraging AI and other technologies to improve the sophistication and efficiency of our operations.

While engaging with all our stakeholders, JAPAN POST BANK will steadily put into effect its revised Medium-term Management Plan guided by its unchanging purpose (raison d’être) and management philosophy to increase corporate value and enhance shareholder returns.

I would like to ask for your continued kind support and cooperation in these efforts over the coming years.

Related Information

• Management Strategy
• JAPAN POST BANK Annual Report