Institutional Banking Group Head Clark Graninger October 6, 2005 Institutional Banking Group
Disclaimer The following materials may contain statements that constitute forward-looking statements, plans for the future, management targets, etc. relating to the Company and its subsidiaries. Forward-looking statements are based on current assumptions of future events and trends, which may be incorrect. Actual results may differ materially from those in forward-looking statements as a result of various factors. Unless otherwise noted, the financial data contained in these materials are presented under Japanese GAAP. The Company disclaims any obligation to update or to announce any revision to forward-looking statements to reflect future events or developments. Unless otherwise specified, all the financials are shown on a consolidated basis. Information concerning financial institutions other than the Company and its subsidiaries are based on publicly available information. These materials do not constitute an invitation or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever. 1
Outline 2 FY2004 Performance IBG Introduction Conclusion Strategy IV. III. II. I.
IBG Within Shinsei Bank (¥B) ’03 ‘04 IBG Rev 89.1 97.0 Currently, IBG includes both OBP 51.4 59.1 the core IBG and the Consumer and Commercial Finance (CCF) businesses RBG Shinsei Bank Total (¥B) ’03 ‘04 (¥B) ’03 ‘04 Rev 94.7 140.3 Rev 5.5 43.2 CCF OBP 54.0 76.3 OBP 2.5 17.1 3
IBG Organization Relationships Products Corporate Advisory Asset Management JV Corporate Banking (214) Corporations Business Sub-Group 2,291 Wealth Management JV Real Estate, Hotel, Real Estate Real Estate Finance (57) Construction Finance Sub-Group 186 Public Sector (12) Public Sector Finance Sub-Group 134 Corporate Revitalization Specialty Finance Corporate Business Restructuring (168) International Principle Finance Private Equity Solutions Sub-Group Portfolio Real Estate Principal Investment Credit Trading 68 Financial Institutions Financial and Capital Markets Capital Markets Institutions (256) Sub-Group 508 Consumer & Commercial Finance N.A.** Acquisition Management (26) (CCF) (No. of Staff) Organization Aligns Relationships and Products * As of 2005/03, excluding zaikei, home loan, and customers with a deposit balance less than JPY 1M 4 ** CCF subsidiaries’ customers
IBG Strategy IBG’s strategy consists of three simple components: Organize Around the Customer 1. Expand Product Offering 2. Provide Clear Incentives to Increase Number of Products Per Customer 3. 700 600 500 Rev (JPY Millions) 400 300 200 100 FY2004 Revenue and OBP - of Top 200 Customers by 1 2 3 4 Number of Products # of Products Revenue (Top 200) OBP (Top 200) 5
Relationships and Products Universe of Relationships Corporates Financial Real Estate, Public Sector Institutions Hotel, Const. (includes restructuring portfolio) “Segment the customer “Finite number of “Unique needs of this “Over the next 10 years base and ensure that Financial Institutions so sector require a we will see more each relationship we cover them ALL , completely integrated innovation in this sector receives the but with a particular coverage approach.” than anywhere else in appropriate level of focus on the regional Japan. We have a service and time.” banks, our historical great brand and are strength.” positioning to capitalize on it.” 6
Relationships and Products Universe of Relationships Corporates Financial Real Estate, Public Sector Institutions Hotel, Const. (includes restructuring portfolio) “Segment the customer “Finite number of “Unique needs of this “Over the next 10 years base and ensure that Financial Institutions so sector require a we will see more each relationship we cover them ALL , completely integrated innovation in this sector receives the but with a particular coverage approach.” than anywhere else in appropriate level of focus on the regional Japan. We have a service and time.” banks, our historical great brand and are strength.” positioning to capitalize on it.” Universe of Products Securitization NRL NRL Credit Trdng Credit Trdng 7
Relationships and Products Universe of Relationships Corporates Financial Real Estate, Public Sector Institutions Hotel, Const. (includes restructuring portfolio) New Securitization Asset Classes Growth Areas Loan Syndication Capital Markets Distribution Wealth Management Asset Management Stable Base Securitization Non-recourse Lending Credit Trading 8
Outline IBG Introduction I. FY2004 Performance II. Overview and Highlights A) Cross-sales Statistics B) Lending Statistics C) BAU Highlights D) Strategy III. Conclusion IV. 9
A) Overview : Revenue, Expense, OBP Revenue Expense OBP 2003 2004 Change 2003 2004 Change 2003 2004 Change Sub-Groups Corporate Banking Business 15.4 9.6 (5.8) 8.7 6.3 (2.4) 6.7 3.3 (3.4) Public Sector Finance 4.5 3.5 (1.0) 3.2 1.6 (1.7) 1.3 1.9 0.7 Real Estate Finance 15.3 19.9 4.6 5.3 5.0 (0.3) 10.0 14.9 4.9 Corporate Business Solutions 15.4 25.7 10.2 7.8 10.9 3.1 7.7 14.8 7.1 Financial Institutions & Capital Markets 39.1 38.6 (0.5) 12.8 14.1 1.3 26.4 24.5 (1.9) Other (0.7) (0.3) 0.4 0.0 0.0 0.0 (0.6) (0.3) 0.3 Total IBG 89.1 97.0 7.9 37.7 37.8 0.1 51.4 59.1 7.7 Consumer & Commercial Finance (CCF) 5.5 43.2 37.7 2.9 26.1 23.2 2.5 17.1 14.6 Total IBG + CCF 94.7 140.3 45.6 40.7 63.9 23.2 54.0 76.3 22.3 (JPY billions) 1 Distressed Business and International Principal Finance are strong (JPY 17B Rev) 2 Securitization (JPY 12.8B Rev), top 3 in Japan 3 Real Estate still growing, profit-taking opportunities (JPY 800B Assets) 10 Note: Numbers as of FY2004
A) Overview : YoY Revenue Change by Product Revenue Breakdown – IBG Products FY2003 vs FY2004 JPY Billions FY2003 FY2004 Non recourse loans 14.3 18.9 Forex, Derivatives, Equity related 15.5 16.7 Credit Trading 8.7 15.8 Corporate Loans *1 20.0 14.6 Securitization 16.6 12.6 Principal Investment 5.2 7.8 Other Capital Markets *2 5.5 7.7 Others 3.0 2.6 Total Revenue 89.1 97.0 *1: Include balance sheet loans and specialty finance *2: Significant portion of this growth relates to business activities in Shinsei Securities and Shinsei Trust 89.1 97.0 100 Other Capital Markets 80 Principal Investment 12.6 16.6 Securitization 60 14.6 Corporate Loans 20.0 15.8 40 Credit Trading 8.7 16.7 Forex, Derivatives, Equity related 15.5 20 18.9 14.3 Non-recourse loans 0 FY2003 FY2004 Note: Management accounting basis Credit Trading above includes international business Revenue Streams are less concentrated in any one area 11
B) Cross-sales Statistics FY2003 FY2004 No. of Products per Customer 1.21 1.28 Total Revenue 73,003 81,612 Average Revenue per Product 19.3 22.6 Revenue in JPY millions, Customer Revenue only � Number of products per customer increased � Our focus on profitable customers led to an increase in Customer Revenue 450 400 Average Revenue (JPY millions) 350 300 250 200 150 100 Avg. Revenue per Customer has 50 increased in FY2004, especially for - those customers with 3 products 1 2 3 # of Products FY03 FY04 12
C) Lending Statistics � The Corporates (CBBS) Loan Balance shrinkage has stopped Balance Sheet Revenue FY2002 FY2003 FY2004 FY2002 FY2003 FY2004 2,596 1,937 2,123 13,628 13,517 10,925 Corporate � No change in credit quality 494 209 53 19,513 5,641 2,083 Restructuring 206 298 142 4 369 389 Financial Institutions � Avg. corporate spread is 52bps Basic Lending Total 3,297 2,445 2,320 33,145 19,527 13,397 (for CBBS), 156 bps for (JPY billions) (JPY millions) Restructuring (CBSS) NPL ratio was 1.43% � Corporate (Balance Sheet) Restructuring (Balance Sheet) JPY Billions JPY Billions 3 , 0 0 0 6 0 0 2 , 5 0 0 5 0 0 2 , 0 0 0 4 0 0 1 , 5 0 0 3 0 0 1 , 0 0 0 2 0 0 1 0 0 5 0 0 0 0 F Y 2 0 0 2 F Y 2 0 0 3 F Y 2 0 0 4 F Y 2 0 0 2 F Y 2 0 0 3 F Y 2 0 0 4 Note: Figures on this page represent only Basic Lending. 13
D) BAU Highlights The Credit Trading, Non-Recourse Lending, and Securitization franchises at � Shinsei have entered their 5th year of operation. All three businesses continue to make a stable and significant contribution to overall profitability in IBG We look at each as a mature and permanent part of the franchise – part of BAU � (“Business as Usual”) We expect a leveling off in all three businesses at some point in the next 2-3 years, � which we will complement with a portfolio of new business introductions beginning this fiscal year Our 5-year history and current outlook show stability in these three businesses 14
Recommend
More recommend
