Continued ROE improvement; potential for early additional share buybacks; reit. Buy

Research evidence excerpt

Continued ROE improvement; potential for early additional share buybacks; reit. Buy

Japan - Financials and Property Coverage Cluster

Investment rating Company BofA Ticker Bloomberg symbol Analyst

Hachijuni Nagano Bank HACBF 8359 JP Yuji Kobayashi

Japan Post HD JPHLF 6178 JP Shinichiro Nakamura

Japan Post Insurance JPPIF 7181 JP Natsumu Tsujino, CFA

Mitsubishi Estate MITEF 8802 JP Takumi Kasai

Nomura Holdings NRSCF 8604 JP Natsumu Tsujino, CFA

Nomura Holdings NMR NMR US Natsumu Tsujino, CFA

ORIX ORXCF 8591 JP Natsumu Tsujino, CFA

ORIX IX IX US Natsumu Tsujino, CFA

Sekisui House SKHSF 1928 JP Takumi Kasai

Shimizu Corporation SHMUF 1803 JP Takumi Kasai

Shizuoka Financial Group SFGIF 5831 JP Shinichiro Nakamura

Sony Financial Group SFGRF 8729 JP Natsumu Tsujino, CFA

Sumitomo Realty & Development SURDF 8830 JP Takumi Kasai

T&D Holdings TDHOF 8795 JP Natsumu Tsujino, CFA

Tokyo Century TCNRF 8439 JP Natsumu Tsujino, CFA

Yokohama Financial Group CCRDF 7186 JP Shinichiro Nakamura

UNDERPERFORM

Aozora Bank AOZOF 8304 JP Shinichiro Nakamura

Daito Trust Construction DITTF 1878 JP Takumi Kasai

Fukuoka Financial Group FKKFF 8354 JP Shinichiro Nakamura

Haseko Corporation HSKCF 1808 JP Takumi Kasai

Mitsubishi HC Capital MIUFF 8593 JP Natsumu Tsujino, CFA

Rakuten Bank XHRUF 5838 JP Shinichiro Nakamura

SBI Shinsei Bank XJYWP 8303 JP Shinichiro Nakamura

Seven Bank SEBNF 8410 JP Shinichiro Nakamura

Shiga Bank SGBKF 8366 JP Yuji Kobayashi

Sumitomo Mitsui Trust Group CMTDF 8309 JP Shinichiro Nakamura

iQmethod SM Measures Definitions

Business Performance Numerator Denominator

Return On Capital Employed NOPAT = (EBIT + Interest Income) × (1 − Tax Rate) + Goodwill Amortization Total Assets − Current Liabilities + ST Debt + Accumulated Goodwill

Amortization