JTG initially provided consumer and corporate financing in Japan. With a shrinkage of the market, however, we swiftly withdrew from consumer finance business to specialize in credit guarantee business on the strength of our loan expertise developed until then. We currently focus on providing guarantee for real estate related transactions. The size of guarantee is on a steady rise. A primary driver is our guarantee for Apartment Loan based on the exclusive credit screening. Meanwhile, we have started guarantee for real estate-backed loan (reverse mortgage type) and the service is well received by our customers, in particular the retired. Going forward, we will seek better earnings through the credit guarantee business.
Partir Servicer is a special servicer experienced in purchasing real estate backed loan and unsecured receivables and managing/collecting loan assets. The growing operations based on practical expertise bring about earnings. Going forward, we will seek better earnings by purchasing receivables aggressively, strengthening corporate receivables collection service and starting support for corporate revitalization.
JTG launched the savings bank business in 2012. In 2015, the savings bank took over loan operations from our consumer finance subsidiaries and we exited the moneylending business in the country. Going forward, JTG will seek maximum profits through the following: increasing consumer loan for good-standing customers to improve profitability in light of the BIS capital adequacy ratio; focusing on large corporate loan, secured loan, etc. to make the loan portfolio stable; and responding quickly and flexibly to market changes.
JTG has been running business based on the transparent management and rigorous compliance. While pursuing the transparency and compliance as key operating policies, we will strive to become number one in South Korea through the promising receivables purchase and collection businesses.
Bank JTrust Indonesia (“BJI”), acquired in 2014, has suffered from low lending rates and high bad debts risk of the large-lot loan constituting a majority of the portfolio. However, BJI is shifting such loan asset to small-lot products, aiming to improve net interest income and diversify risk.
Meanwhile, regarding Kubota's agricultural equipment sale in rual regions, by providing installment loan, that allowing for easy purchase of the equipment and increasing productivity and etc., the service has contributed to the development of local communities.
BJI will open new branches in major local cities aggressively from 2017. Also, BJI works toward a new style of banking services, unlike local banks, including a forthcoming branch with an in-store café.
J Trust Investments Indonesia acquired NPLs from BJI in October 2015, and since then has been focusing on managing and collecting the NPLs. Going forward, we will seek better earnings by strengthening collection through various measures including early sale of real estate collateral and support for corporate revitalization.