Retail & Business Banking Company

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To realize the wishes, hopes, and growth of our customers, we will aim to be a partner that helps retail customers design their lives, and a strategic partner for corporate clients' business structure transformation and growth strategy needs.

Basic policy

We will aim to transition to a more stable revenue base through channel optimization and expansion into new business areas. Our basic policy is to realize the wishes and hopes of our retail customers and the continued growth of our corporate clients, working to build a sustainable retail business which is responsive to the needs of our customers in this new era. As we implement structural reforms in three interconnected areas—business structure, finance structure, and corporate foundations–we will create new value in both finance and non-finance domains by focusing the allocation of our corporate resources on enhancements including for digital marketing in a way that enables us to better respond to customer needs, as well as on new business areas through alliances with other companies.

Business environment and challenges

As structural changes in customer needs accelerate, recently society as a whole has been undergoing considerable changes including changes to people's lifestyles and the increasing adoption of remote technology. In such times, retail customers are in need of support for designing their lives in an era of increased longevity. And among SMEs and middle market clients, there is increasing demand for solutions in areas such as business structure transformation and growth support, in light of the uncertain business environment. It is essential that we fully respond to these changing needs and advance initiatives to address the accelerating use of online communication. Amidst these changes in the business environment, we must seek to take advantage of these changes in customer needs in order to create new business opportunities while also allocating our finite corporate resources in a way that enables us to establish a stable revenue base.

Trends in performance

In fiscal 2020, amid challenges such as a decline in consumption and investment due to the COVID–19 pandemic, we achieved Net Business Profits exceeding that of the previous fiscal year. This was the result of improving our top line, including in corporate and retail investment business, as well as measures such as a reduction of expenses achieved through our steady implementation of structural reforms. We will continue enhancing structural reforms in order to reduce fixed costs and expand our stable revenue base.

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  1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
  2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

Progress on key strategies

Strengthening consulting

We aim to be a partner that helps retail customers design their lives in an age of longevity. We are providing consulting on asset formation/management and asset succession to match each individual customer's unique goals, considering their financial objectives and future outlook according to their different stages in life. We also aim to be a strategic partner for SMEs and middle–market clients as they seek to maintain or expand their businesses in a business environment with an uncertain outlook. By offering sophisticated solutions as a united group, we are supporting our clients' business structure transformation and growth strategies.

Related key sustainability areas (materiality)

  • Declining birthrate and aging population, plus good health and lengthening lifespans
  • Industry development & innovation
  • Sound economic growth

 

Building an optimal channel network

With the emphasis on remote technology growing stronger throughout society during the COVID–19 pandemic, we will position our mobile and other related services as our primary channels and expand the remote and online services we offer, leveraging digital technologies to enable transactions without the need to visit a branch. At the same time, we will transform branches into consulting spaces offering one–stop service for banking, trust banking, and securities, as well as remote consultations, allowing us to respond to a diverse range of customer consultation needs.

Related key sustainability areas (materiality)

  • Industry development & innovation

 

Expanding into new business domains

Utilizing open collaboration and the adoption of advanced technology through alliances with other companies, we are creating new value beyond the traditional boundaries of finance in fields such as online lending, cashless payments, and the data business, in order to formulate a new business model aligned to the ways that society and our customers are changing. By combining the non-finance mobile-based services of tech companies with our financial capabilities, we will also work to expand transactions with new customer demographics.

Related key sustainability areas (materiality)

  • Industry development & innovation
  • Sound economic growth

 

Retail assets under management (JPY trillion)

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Number of core customers (10,000 users)

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Clients with business succession needs
(thousand companies)

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Highlights

Reorganizing our branch network into separate frameworks for retail customers and corporate clients

ImageWith the effects of changes in the social and business environment, including from lifestyle changes and the accelerated adoption of remote technology, structural changes in customer and client needs are rapidly progressing, further expanding the importance of specialist advice from financial institutions. In order to respond to the unique needs of retail customers and corporate clients in a more specialized way, we have reorganized our branch network into separate operational frameworks for retail customers and corporate clients. Through these measures, we aim to respond continually to increasingly sophisticated customer and client needs, as well as to changes in society.

The launch of the Digitalization Project

ImageIn response to new lifestyles that have resulted from changes in customer needs in recent years, as well as from the impact of the COVID-19 pandemic, we launched the Digitalization Project in January 2021 to expand the digital and remote services we offer for a wide range of transactions. Through this project, we will endeavor to provide transaction services that are both convenient and environmentally friendly, enabling paperless services available anywhere, anytime, without the need to visit a branch.

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