1、WHATS NEXT FOR JAPANESE MEGABANKS?Dylan WalshJasper YipAngelina OgumaJulian AdlerVarun VishnubhatlaWhy read this paper?The Japanese banking industry is among the largest in the world,but equity investors do not value Japanese megabanks like global leaders in the industry.The valuation gap to global

2、peers is 70%today.We believe this valuation gap will remain stubbornly wide unless the megabanks take action to address investor concerns.The old news is that the organizational and operational complexity of the domestic megabank model is a major concern for investors this will take time to address

3、and may never be fully resolved.What is new in our study is that investors see more immediate opportunities for the megabanks to close the valuation gap.Japanese banks have a generational opportunity to build a wealth management franchise that generates returns now common in other markets,delivering

4、 150%in price-to-book improvement.Investors also see significant untapped value in a pan-Asian banking platform that can capture local growth opportunities and extract synergies from regional operations,potentially delivering 115%in price-to-book improvement.Each opportunity presents a path to break

5、 through the critical 1x price-to-book threshold the Tokyo Stock Exchange demands.This is a critical moment for Japanese banks.All eyes are turning toward Japan and Japanese banks will need to move quickly to capture the opportunity that everyone sees.CONTENTSExecutive Summary 4A Moment of Opportuni

6、ty 6A Moment of Challenge 8Seizing the Moment 14Strategy 1:Address organizational and operational inefficiencies 14Strategy 2:Develop client-oriented wealth business 15Strategy 3:Establish a pan-Asian banking powerhouse 20 Oliver Wyman4Whats Next for Japanese Megabanks?EXECUTIVE SUMMARY1 Yuasa,K.(20