Japan Post Bank

Basic Information

Stock Code
7182
Industry
Banking
Category Detail
Banks
Prefecture
Tokyo
Establishment Year
September 2006
Listing Year
November 2015
Official Website
https://www.jp-bank.japanpost.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Japan Post Holdings, Aozora Bank, Mitsubishi UFJ, Resona Holdings, Sumitomo Mitsui Financial Group, Mizuho Financial Group, NTT

Overview

Japan Post Bank is an ordinary bank established in 2006 as part of the Japan Post Group, leveraging its nationwide branch network to hold one of the largest deposit balances among domestic financial institutions.

Current Situation

Japan Post Bank achieved consolidated revenue of approximately 1.9467 trillion yen and net profit of approximately 280.1 billion yen (fiscal year ended March 2021), positioning itself as a bank with one of the largest savings balances in Japan. It operates branches in all 47 prefectures nationwide, securing a broad customer base from rural to urban areas. Japan Post Holdings Co., Ltd. holds a majority stake, and although listed on the Prime Market, it faces challenges with insufficient free float ratio. The bank is focusing on expanding new businesses and improving services through IT technologies while complying with regulations from the Financial Services Agency and others. It is advancing diversification strategies such as strengthening investment trust sales, launching smartphone payment 'Yuucho Pay,' and starting agency business for housing loans. By fusing regionally rooted services with a nationwide infrastructure, it aims for sustainable growth. It is actively addressing environmental and social issues, expanding community contribution activities, and in the medium term, implementing management strengthening plans envisioning regulatory relaxation accompanying reduced shareholding ratios.

Trivia

Interesting Facts

  • Japan Post Bank is one of the financial institutions with the largest savings balance in Japan.
  • One of the rare banks with branches in all prefectures nationwide.
  • Continues using the investment trust mascot character 'Masumasu-kun.'
  • ATMs feature color universal design considerate to the elderly.
  • Characterized by service deployment inheriting postal savings traditions even after privatization.
  • Japan Post Bank ATMs form a massive network of over 60,000 units nationwide.
  • Long-term special membership status with the Japanese Bankers Association.
  • Japan Post Bank was previously subject to additional regulations by the Financial Services Agency and Ministry of Internal Affairs.
  • Stable management backed by Japan Post Group's largest funding capabilities.
  • Ongoing adjustments to ownership and free float ratios.
  • Provides its own smartphone payment 'Yuucho Pay' to promote digitalization.
  • Strength in broad regional deployment cultivated through post office network.
  • Japan Post Bank was established under the postal privatization law.
  • Review of savings cap aiming for 3 million yen is underway.
  • New fee structure introduced for coin deposits/withdrawals at ATMs.

Hidden Connections

  • As part of the Japan Post Group, strong capital ties with the holding company.
  • Collaborates with agent network based on post offices in all 47 prefectures nationwide.
  • Partners with Suruga Bank, Sony Bank, and SBI Shinsei Bank for housing loans.
  • Closely collaborates with major financial firms like Sumitomo Mitsui Card and Mitsubishi UFJ Trust Bank.
  • In fierce sales competition with Japan's megabanks.
  • Main partners for investment trust sales include Nomura Asset Management, etc.
  • Government-held share sales trends impact stock price and market.
  • ATM corner operations mainly by Hitachi and OKI Electric as key vendors.

Future Outlook

Growth Drivers

  • Customer base expansion utilizing large-scale store network
  • Strengthening fee income from investment trust sales, etc.
  • Operational efficiency and customer convenience improvement through DX promotion
  • Expansion of smartphone payment service adoption
  • Regulatory relaxation from phased government share sales
  • Activation of domestic and international fund operation markets
  • Diversification of financial needs in urban and rural areas
  • Brand strengthening through sustainable financial services
  • Expansion of financial services agency business
  • Full entry into housing loan market

Strategic Goals

  • Achieve free float ratio of 35% or more on Prime Market
  • Improve digital financial service ratio to 50% or more
  • Maintain and improve customer satisfaction to 90% or higher
  • Expand lineup of sustainable financial products
  • Maintain and expand one of Japan's largest asset management scales
  • Nationwide deployment of community contribution activities
  • Revenue diversification through expansion of new lending services
  • Latest IT infrastructure upgrades and security enhancements
  • Strengthen management base to respond to changes in international financial environment
  • Raise female and young manager ratio to 30% or more

Business Segments

Fund Operations and Management

Overview
Diversifies and manages massive deposit funds collected at post offices into domestic and international markets.
Competitiveness
Fund management capabilities leveraging one of Japan's largest deposit balances
Customers
  • Japan Post Group
  • Local governments
  • Financial institutions
  • Corporate customers
  • Government bond buyers
Products
  • Fund operations in domestic and international markets
  • Government bond operations management
  • Fund procurement services
  • Corporate deposits
  • Asset management advice

Financial Products Transaction Agency Business

Overview
Supports long-term asset formation through sales of investment trusts and variable annuities to customers.
Competitiveness
Extensive lineup of financial products and nationwide branch network
Customers
  • Individual investors
  • Small and medium enterprises
  • Pension funds
  • Asset management companies
  • Fund managers
Products
  • Investment trust sales
  • Variable annuity sales
  • Asset management consulting
  • Fund selection
  • Customer support

Financial Services Agency Business

Overview
Agencies sales of housing loans and insurance products from other financial institutions, providing multifaceted financial services.
Competitiveness
Enhanced customer touchpoints through extensive branch network and post office collaboration
Customers
  • Housing loan applicants
  • Personal loan customers
  • Insurance subscribers
  • Corporate customers
  • Financial partners
Products
  • Suruga Bank card loan agency
  • Sony Bank housing loan partnership
  • SBI Shinsei Bank housing loan intermediation
  • Casualty insurance solicitation
  • Various loan referrals

System Management and IT Services

Overview
Develops and operates core banking and foundational systems supporting financial operations.
Competitiveness
System development capabilities through partnerships with major domestic IT firms
Customers
  • Japan Post Group
  • Japan Post Bank itself
  • Partner companies
  • Outsourced operations
Products
  • Core banking system operations
  • Core system maintenance
  • System development
  • Security management

ATM Operations and Management

Overview
Provides highly convenient transaction environments through Japan's largest ATM network.
Competitiveness
Extensive network and high uptime
Customers
  • Post offices nationwide
  • Convenience stores
  • Financial institutions
  • Agents
  • Customers
Products
  • ATM installation and maintenance
  • Cash card systems
  • Biometric authentication technology introduction
  • Transaction history management

Corporate Financial Services

Overview
Offers diverse financial services to corporations and public entities.
Competitiveness
Services leveraging nationwide branches and post office network
Customers
  • Local governments
  • Small and medium enterprises
  • Public institutions
  • Financial institutions
  • Corporate customers
Products
  • Public utility payment agency
  • Corporate lending
  • Payroll transfer services
  • Cash management services
  • Corporate bilateral lending

Investment Trusts and Asset Management Services

Overview
Supports asset management for individuals and institutional investors with diverse investment products.
Competitiveness
Partnerships with major domestic asset management companies
Customers
  • Individual investors
  • Fund managers
  • Institutional investors
  • Asset management firms
  • Small and medium enterprises
Products
  • Various investment trust handling
  • Asset management advice
  • Fund sales
  • Operations reporting services
  • Online investment trust sales

New Business Development

Overview
Advances research, development, and provision of financial services using new technologies.
Competitiveness
Innovation promotion through internal and external group collaborations
Customers
  • Financial customers
  • Government agencies
  • IT companies
  • Startups
Products
  • Smartphone payment services
  • Blockchain technology
  • New lending products
  • Digital financial services

Risk Management and Compliance

Overview
Conducts thorough risk assessments, audits, and legal compliance to support sound management.
Competitiveness
Strict compliance framework and audit functions
Customers
  • Japan Post Bank internal
  • Regulatory authorities
  • Trading partners
  • Investors
Products
  • Internal audits
  • Legal compliance management
  • Incident response
  • System audits

Asset Management Support

Overview
Provides products and services to support customer asset formation.
Competitiveness
Broad product handling utilizing nationwide network
Customers
  • Individual customers
  • Asset management companies
  • Trust banks
  • Securities firms
Products
  • Asset management consulting
  • Investment trust selection and sales
  • Asset portfolio design

Regional Financial Services Support

Overview
Deploys financial services contributing to regional economic revitalization and social issue resolution.
Competitiveness
Regionally rooted services leveraging nationwide network
Customers
  • Local governments
  • Regional banks
  • Small and medium enterprises
  • Public institutions
Products
  • Regional revitalization lending
  • Financial education support
  • Disaster recovery support

Competitive Advantage

Strengths

  • Extensive branch network across all 47 prefectures nationwide
  • Financial strength backed by massive deposit balances
  • Strong customer touchpoints through post office network collaboration
  • Diversified financial services including investment trust sales
  • Strong brand power and government-backed credibility
  • Unique transfer accounts and remittance infrastructure
  • Advanced ATM network with biometric authentication
  • Abundant fund management expertise
  • Handling of diverse financial products
  • Trust from long history of postal savings business
  • Stable revenue base
  • Policy response capabilities
  • Extensive partner network
  • Public utility payments and payroll transfer services
  • Promotion of digital services

Competitive Advantages

  • Stable earnings from Japan's largest-scale deposit balances and fund management capabilities
  • Agent network utilizing post offices nationwide
  • Credibility and regulatory advantages backed by government investment
  • Maximizing customer touchpoints through diverse channels
  • High customer convenience provided by IT infrastructure development
  • Revenue diversification through housing loans and financial product agency business
  • Active adoption of advanced technologies like biometric authentication and smartphone payments
  • Meeting broad customer needs with comprehensive service lineup
  • Capital policies anticipating medium- to long-term regulatory relaxation
  • Maintaining trust through thorough compliance framework
  • Developing corporate market through relationships with public entities nationwide
  • Collaboration with major asset management companies in investment trust sales
  • Improved customer satisfaction through regionally rooted services
  • Enhanced convenience via one of Japan's largest ATM networks
  • Customer base based on rich history and brand

Threats

  • Risk to maintaining Prime Market listing due to insufficient free float ratio
  • Intense competitive environment with major megabanks
  • Potential strengthening of regulations by Financial Services Agency, Ministry of Internal Affairs, etc.
  • Risk of shrinking interest margins in low-interest environment
  • Intensifying competition in digital financial services
  • Risks from money laundering and fraudulent transactions
  • Impact of domestic and international economic fluctuations on fund operations
  • Market instability to reactions on new business entries
  • Shrinking domestic customer base due to population decline and aging
  • Risks from fluctuations in foreign exchange and government bond markets
  • Brand image deterioration from incidents
  • Risk of deteriorating relationships with partner banks

Innovations

2023: Partial Sale of Japan Post Bank Shares by Japan Post Holdings

Overview
Japan Post Holdings sold a portion of its Japan Post Bank shares on the market, reducing its ownership ratio.
Impact
Contributes to improving free float ratio for Prime Market listing maintenance standards

2022: Launch of Yuucho Direct Plus Service

Overview
Enhanced internet and telephone transaction services eliminating the need for passbooks.
Impact
Improved customer convenience and operational efficiency

2021: Launch of Lending Business via Account Overdraft

Overview
Deployed lending services for sudden funding needs at directly operated stores and post offices nationwide.
Impact
Secured new revenue sources and improved customer satisfaction

2020: Expansion of Housing Loan Intermediation Business

Overview
Started intermediation for Sony Bank and Shinsei Bank housing loans at nationwide bases.
Impact
Enhanced presence in housing loan market

2020: Launch of Yuucho Debit Card Issuance

Overview
Launched highly convenient debit cards in partnership with Sumitomo Mitsui Card.
Impact
Strengthened cashless payment sector

2022: Introduction of New ATM Coin Deposit/Withdrawal Fees

Overview
Revised fee structure for coin usage at ATMs to sustain services.
Impact
Improved cost balance for ATM operations

2021: Expanded Introduction of ISO and Biometric ATMs

Overview
Enhanced security with finger vein authentication for IC cash cards.
Impact
Improved customer trust and convenience

2023: Review of Capital Policies to Improve Prime Market Free Float Ratio

Overview
Plans for ownership ratio adjustments by Japan Post Group and share buybacks.
Impact
Enhanced market liquidity and promotion of listing standard compliance

Sustainability

  • Promotion of community contribution activities
  • Thorough customer information protection
  • Implementation of environmental burden reduction measures
  • Advancement of diversity and inclusion
  • Development of sustainable financial services
  • Promotion of socially responsible investments
  • Promotion of renewable energy utilization
  • Deployment of regional reconstruction support activities
  • Introduction of energy-saving infrastructure equipment
  • Support for disseminating financial education
  • Promotion of simplified public utility payments
  • Deployment of services considerate to the disabled