[Company analysis] Shinsei Bank, Ltd. (新生銀行)

「Shinsei Bank, Ltd. (新生銀行)」is a relatively small bank with 28 main branches and 7 branch offices. However, they are appealing to the general consumer with innovative ways  that existing banks could not think about. Such as 24-hour ATM operation and free of ATM fees. The number of consolidated employees is approximately 5,179.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Shinsei Bank, Ltd.
Company name (Japanese)	新生銀行
Date of establishment	December 1952
Headquarters location	〒103-8303 東京都中央区日本橋室町二丁目4番3号
Capital	512,204
Consolidated sales	372,243
Consolidated operating profit	55,397
Consolidated total assets	9,571,172
Consolidated capital	896,642
Capital adequacy ratio	9.4%
Consolidated number of employees	5,179

 

 

 

2. Summary and Features

 
「Japan Long-Term Credit Bank(日本長期信用銀行)」which was established by the "Separation of long and short financial institutions(金融機関の長短分離)" during the Yoshida Cabinet(吉田内閣) in the past, is the predecessor of the「Shinsei Bank」. At the time of its begining, it was a bank who provide stable long-term funds. However, due to the recession after the collapse of bubble economy, this bank had confronted management failure and eventually went bankrupt in October 1998. And eventually it was temporarily nationalized.

In March 2000, this company was sold for 1 billion yen by a competitive bidding to the investment corporation「New LTCB Partners」including the American corporate revitalization fund「Ripplewood Holdings」. And in June 2004, this bank restarted under the name「Shinsei Bank」. However, achieving management normalization was not that easy. Soon after its establishment, the relationship with the above-mentioned「New LTCB Partners」was dissolved in November 2006. And in 2007, the CEO at that time resigned. 

During the 2008 Subprime mortgage crisis,「Shinsei bank」experienced huge losses in foreign investment. In 2009, it was said that「Shinsei Bank」and「Aozora Bank(あおぞら銀行)」are holding discussions for business integration. However, the Shinsei Bank side turned to the final deficit in the consolidated financial statements for the fiscal year ended March 2010, and both companies failed to reach an agreement on the management policy. The negotiations were broken.

Then,「Shinsei Bank」took up new policy of free remittance fees centered on online banking. They set up a sales window that can use ATMs 24 hours a day, 365 days a year. In addition, they started a comprehensive account service named "PowerFlex" which is conbined yen and foreign currency deposits as a set. They are taking an aggressive strategy in the retail field, such as setting up individual booths at core stores.

Currnetly「Shinsei Bank」is open even after 15:00, and they provide a cash card with 32 different colors and an ATM operating service 24 hours a day. In addition, this bank made contract with major convenience store chain,「Seven-Eleven Japan(セブン-イレブン)」,「FamilyMart(ファミリーマート)」,「Lawson(ローソン.)」and「Ministop(ミニストップ)」as well as ATMs from「Japan Post(ゆうちょ)」and「East Japan Railway Company(東日本旅客鉄道)」, so customers of 「Shinsei Bank」can use above ATMs without any charges.

 

 

 

3. Major Business

 

■ Bank business

 

 

 

4. Financial information

 

※Unit is JPY million

	2016	2017	2018
Consolidated sales	380,444	383,869	372,243
Consolidated operating profit	47,542	56,811	55,397
Consolidated total assets	9,258,324	9,456,660	9,571,172
Consolidated net assets	820,786	856,034	896,642