Cross Sector: Can telecoms succeed in banking business?: Competition for retail online banking services

Research evidence excerpt

Cross Sector: Can telecoms succeed in banking business?: Competition for retail online banking services

J P M O R G A N Asia Pacific Equity Research

18 June 2026

Cross Sector: Can telecoms

succeed in banking business?

Competition for retail online banking services

Amid intensifying competition for acquiring deposits, NTT and KDDI both aim to Japan Equity Research

expand earnings in their financial businesses under their respective medium-term

IT Services and Telecoms

plans. For its financial business, NTT targets FY2030 EBITDA of ¥230 billion

(from around ¥70 billion in FY2025) and looks to strengthen collaboration Matthew Henderson AC

between SBI Sumishin Net Bank and d Card. In contrast, KDDI targets FY2028 (81-3) 6736-8831

matthew.henderson@jpmorgan.com

financial business operating profit of ¥100 billion (from around ¥70 billion in

Banks

FY2025), which is relatively modest, but aims to strengthen capabilities to acquire

deposits at au Jibun Bank and expand loan revenue. We believe deposit acquisition Takahiro Yano, CFA AC

is a key challenge for both banking businesses, but NTT’s financial business (81-3) 6736-8616

takahiro.yano@jpmorgan.com

currently appears to have more potential for earnings growth through synergies. In

Kohichi Takano

this report, we review banking business positioning and the competitive

(81-3) 6736 8621

environment for the two telecom companies. kohichi.takano@jpmorgan.com

JPMorgan Securities Japan Co., Ltd.

• Megabanks, fintech companies competing fiercely in retail banking

services: The telecom sector has made a notable entrance into retail financial

services. Key areas of competition include payments, banking, securities, and

credit cards, but banking is the core financial service closely related to all the

other services.