Towards the establishment of business foundation to generate stable profit
We would like to extend our heartfelt appreciation for your support.
Profits by business segment for fiscal 2016 are as follows. Domestic financial business and investment business exceeded our targets.
Financial business in South Korea was below the target due to a decline in earnings (recording of expenses ahead of schedule), following a change in the accounting treatment of negative goodwill posted in fiscal 2015 at a time of fiscal consolidation. Still, we believe that overall business performance is making steady progress, entering the phase of stable growth.
For financial business in Southeast Asia, a rehabilitation project fell behind schedule. Nevertheless, Bank J Trust Indonesia implemented a structural reform led by a seasoned Japanese director, who previously assumed a bank president in Indonesia. Through these efforts, the bank is escaping from a loss-making structure to achieve profits. We consider fiscal 2016 was the year to lay our groundwork for sustainable growth.
The Group departed from sluggish performance in fiscal 2016. As a comprehensive financial service provider in Asia, we are confidently moving forward for sustainable growth from scratch in fiscal 2017. Domestic financial business is expected to continue generating stable profit. For fiscal 2017 and 2018, financial business in South Korea will become a pillar of earnings growth with its established business base. Then, financial business in Southeast Asia will become our growth driver.
We will make group-wide efforts to achieve the target set in the Medium-Term Business Plan.
Thank you for your continued assistance and guidance.
Nobuyoshi Fujisawa, President & CEO
J Trust Group