Shinhan Financial Group Co Ltd (SHG) 2015 Q3 法說會逐字稿

Greetings. I'm Yu Sung Hun, the Head of IR. I would like to thank all of you for participating in the 2015 Q3 earnings conference despite your busy schedules. We will now begin the Q3 earnings report. Today we have here with us our CSO, Kim Hyung-Jin; CFO Yim Bo-hyuk; as well as Managing Director and Finance Head, [Jeon Young-Kyo]. We will first open up the conference call with a presentation from our CFO Yim Bo-hyuk for Q3 and after the presentation we will be taking questions. I would like to now invite our CFO, Yim Bo-hyuk, for the 2015 Q3 earnings report.

Greetings. I am Yim Bo-hyuk, the CFO. I will extend my gratitude to the investors, analysts, and journalists in and out of Korea for taking part in Shinhan Financial Group's 2015 Q3 earnings release. Thank you very much for your participation. I will now walk you through the major highlights of Shinhan Financial Group's 2015 Q3 business performance. Let me begin with the Group's income on page 6. Shinhan Financial Group's 2015 Q3 cumulative net income recorded KRW1.9631 trillion. Net income in Q3 recorded KRW679 billion, 11% increase YoY, but went down 1.9% QoQ, a slight drop. Three major characteristics of this quarter's performance are the following. First, interest income was [guarded] through sound loan growth. Second, SG&A was effectively controlled. Third, asset quality improved leading to the stabilization of loan loss provisions, which rose in the first half as a one-off factor.

Looking at the income breakdown. Despite the margin contraction, Group's interest income thanks to the continuous loan growth of the Bank at the rise of the non-banking group subsidiaries interest income including financial investment in life insurance had a limited drop of 1.9% YoY and went up 1.4% QoQ. Non-interest income increased by 33.5% YoY helped by higher fee income of the bank and financial investment as well as the growth of available for sale securities disposition gains. Compared to the previous quarter, AFS disposition gains decreased and impairment losses increased leading to a 40.1% drop in non-interest income, but the recurring non-interest income base including fee income is stably being maintained. Group's G&A went up 3.4% YoY and is showing appropriate growth.

Taking into account the performance linked pay and securities transaction taxes following the robust sales of Shinhan Financial and Investment, total G&A is being maintained at a similar level to the previous quarter. Credit costs, which rose temporarily in the previous quarter, dropped 41% QoQ with the decline in Bank's provisioning and increase in writebacks. Accordingly, the Group's credit cost ratio improved from 0.59% in the first half to 0.49%. Next page 7, Group subsidiaries income. Taking into consideration the banking and non-banking equity contribution until Q3, net income posted KRW1.2636 trillion and KRW874.3 billion respectively and the income contribution ratio of the non-banking subsidiaries posted 41%. Next page 8, the subsidiaries income. 2015 Q3 banking income thanks to the stabilization of Shinhan Bank credit cost increased 15.2% QoQ.

Non-banking in Q3 had a slight downturn in income growth momentum in Q3, but is showing 19.6% growth with the performance stabilization of credit card and life insurance as well as the income improvement of Shinhan Financial investments. Next is page 9, Shinhan Bank's performance. Bank's Q3 net income posted KRW1.2528 trillion, a 1.5% drop YoY, but the quarterly income increased 15.5% QoQ. Compared to the previous quarter despite the interest income decline and credit cost increase following the margin contraction, non-interest income grew and G&A was effectively controlled leading to only a slight drop for net income. Let me now elaborate on the income breakdown in Q3. Bank's quarterly NIM stopped at 2 bp contraction compared to the previous quarter and loans continuously increased leading to a similar level of interest income in the previous quarter.

In addition, with cost cutting efforts and continuous asset quality improvement, G&A dropped 1.7% QoQ and credit costs went down 76% contributing to a quarterly net income growth. Next page 10, Shinhan Bank non-interest income and G&A. Shinhan Bank's cumulative non-interest income until 2015 Q3 posted KRW836.2 billion, 18.1% increase YoY. Loan originating cost and trust fee income growth led to a 7.7% increase in fee income and dividend income and gains from local disposition sales, loan disposition sales grew YoY as well. On the other hand, non interest income in Q3 went down 53.9% QoQ. The drop was caused mainly by one-off factors which existed in the previous quarter including KRW100.2 billion of Korea housing guarantee shares disposition gains as well as KRW34.6 billion of sale conversion loan disposition gains which took place in the previous quarter, but not in this quarter.

Looking at the Shinhan Bank G&A. Employee related costs grew including wage increase YoY as well as the retirement wage increase caused by the discount rate decline. However, depreciation costs and other ordinary administrative costs declined so the total cost almost did not increase. G&A went down 1.7% in Q3, which was because large scale taxes and public utilities charges including property tax and real estate tax which was recognized in Q2 did not take place in Q3. Excluding this factor, SG&A is at a similar level to the previous quarter. Bank's CIR at the end of the quarter declined 5% from late last year posting 51.4%. Next, Shinhan Card income on page 11. Shinhan Card Q3 2015 cumulative net income recorded KRW521.5 billion, a 2.7% YoY increase.

Increase in credit card sales led to operating income growth including increase of merchant fee income and operating cost and G&A also grew, but interest cost and credit cost declined 8.2% and 9.3% respectively contributing to net income growth. Quarterly net income went down 14% and the major reason was the one-off increase in credit cost in Q3. To elaborate in more detail, with the lacking number of credit card payment dates caused by the South Korean Thanksgiving holiday in late Q3, short-term credit card delinquencies took place recognizing approximately KRW40 billion more of credit cost. However, since the temporary short-term delinquencies were mostly taken care of in October, a similar amount will be written back in Q4 if no one-off items take place. Accordingly, excluding this impact, credit cost and recurring income are stable.

Next on page 13 is the Group asset. As of the end of September 2015, the Group's consolidated total assets stood at KRW365 trillion, growing 8.1% YTD and 1.7% QoQ. The Bank asset is up 9.3% YTD owing to growth in loan assets and the non-banking side assets increased by 5%. In the case of Shinhan Card despite the fall in earning assets, total assets grew by 5.8% owing to the increase of short-term assets including deposit. And Shinhan Financial Investment and Life Insurance operating asset increased by 5.8% and 9% respectively. Next page 14. As at the end of Q3 Shinhan Bank's loans is KRW170 trillion, growing 6.5% YTD and 3.5% QTD. In the case of mortgage loans as of the end of September, the growth rate is 2.8%. But if the securitized safe conversion loan is included, then the growth rate comes to 12.9%, showing steady loan growth on the back of increasing market demand.

In the case of other retail loans, [secured] loans, and unsecured loans or high creditworthy individuals continue to grow so that on an YTD basis it is up 11.1%. SME loans continued to grow driven mostly by SOHO and non-audited SME loans and is up 9.6% YTD. For your reference if we look at SME loan breakdown; SOHO, audited, and non-audited SME loans make up 51%, 23%, and 26% respectively. As of the end of Q3 of 2015 deposit is KRW172 trillion, growing 5.2% YoY and 1.8% QoQ. The low cost deposits grew by 17.2% YTD and continued to maintain a steady growth trend. This is because in Q3 as well the debit card transaction volume grew and credit card merchant payment accounts were also up and new funds from institutional clients like school entities continued to flow in. As of the end of September 2015, the LDR is 98.2%.

Next on page 15, Shinhan Card assets and liabilities. As you can see in the upper left hand side, Shinhan Card's Q3 cumulative card transaction volume is KRW109.4 trillion. And so for the most recent three months, the transaction volume is KRW37.6 trillion. Debit card and credit purchase volume continued to increase steadily so that the transaction volume grew 4.5% YoY and 2.5% QoQ. In the upper right-hand side, the earning assets of Shinhan Card fell 1% YTD, but grew 2.8% QoQ. Next on page 17, the Group's asset quality. As at the end of Q3 2015, the Group's NPL ratio is 0.95% falling by 0.05 percentage point QTD. This is possible because of our continuous management of NPLs and compared to Q2, NPL balance dropped 1.7% while total loans grew by 3.3%. The Group's NPL coverage ratio is 185% growing 2 percentage point QoQ.

Page 18, Shinhan Bank's NPL ratio as at the end of Q3 is 0.85% and the lowest is June of 2008. As you can see from the delinquency chart on the lower left hand side in Q3 the Bank's delinquency rate was 0.43%, a slight increase over Q2 but still at a stable level. On page 19, the Shinhan Card Q3 NPL is up slightly by 1.50% over Q2 and NPL coverage ratio is 315%. In Q3 the Shinhan Card's delinquency rate is 1.68%. Next on page 20 credit cost and write-offs. The Group's credit cost ratio on an annualized basis as shown in the graph in the center of the left hand side, it is 0.49% up 6 bp ever last year's 0.43%. However in Q3, the fall in Shinhan Bank's credit cost led to a drop of 10 bp compared to the 0.59% in the first half. Going forward, we'll continue to control our asset quality to stabilize our credit cost.

Shinhan Card's credit cost reflects as I mentioned before a one-off additional provisioning and this impact will be removed in Q4 and the asset quality is maintained at a fair level. In Q3 write-off in sales of NPL reached KRW300 billion and compared to the KRW550 billion of Q2, there has been a significant reduction. Despite the decline in write-offs and sale, the Group's NPL ratio and delinquency rate is stable, which implies that the actual quality of our assets continues to improve. Next is page 22, capital adequacy. As at the end of Q3 of 2015, the Group's BIS ratio and CET1 ratio was similar to Q2 at 13.2% and 10.8% respectively. This is our expectation. Shinhan Bank's BIS ratio and CET1 ratio estimates are 15% and 12.4% respectively, dropping 0.3 percentage point each over Q2. This is due to the rapid growth of the risk-weighted assets on the back of loan asset growth.

Shinhan Card's capital adequacy ratio is expected to be 28.6%, which is at a fair level. From page 23 and onwards, you will find additional earnings related data on the Group's subsidiaries and the major financial indices and details on Shinhan Bank's SME loans. So, please refer to them at your leisure. With this, I would like to end the Shinhan Financial Group's earnings presentation for Q3 of 2015. Thank you very much.

We now proceed with the Q&A session.

(Operator Instructions) Choi Chung Uk, Daishin Securities.

I'm Choi Chung Uk from Daishin Securities. The first question is about the Bank provisioning is quite low and I think there were some writebacks so can you elaborate on what they are in more detail? The government is saying that they will have year-around classification of corporate loans so there has been some changes in the policy. However for the banks, the situation seems to be quite positive. So, I think that there is a difference in opinion between the government and the banks for asset quality. Why do you think there is a big difference in perception between the government and the banks? In Q4 I think that you could have more provisioning so can you elaborate on what impact you forecast for the provisioning in Q4? That's my first question. And my second question is the earnings has been higher than the consensus so it seems that your income will be quite good and we need to talk about dividends because it's almost at year's end so can you give us your dividend direction going forward? Thank you.

Regarding the first question about the writeback of our credit costs of provisioning, let me explain. In Q3 regarding the writeback of loan loss provisioning, we had two main events. The first item was [Dhyan Wire] KRW23.2 billion and for a semiconductor company and mobile company. There were some of those items coupled together and it was about KRW25.4 billion of provisioning writeback in Q3. What was visualized is about KRW48.6 billion. However, in Q1 and Q2 we did not have a lot of writebacks so it seems that in Q3 we are seeing more writebacks so provisioning seems to be lower than the two previous quarters. However, in the explanation that was provided beforehand in credit card, there were one-off items because there was only one day of repayment or payment days for credit card settlements so KRW40.8 billion. But in Q4 this will be taken care of so in Q4, it seems that the level of provisioning will be quite stable. We have high possibility of stable provisioning in Q4.

I'm Jeon Young-Kyo of the finance team and you mentioned the risk assessment of large corporations and regarding provisioning for large corporations and the change in the government policies. Well, it's not easy for us to make a judgment at this point because in this type of assessment, accumulation of provisioning takes place mostly in June and in September and in order to improve the asset quality of the banks to narrow the gap between the Bank's asset quality, I know that government is trying to have more policies. However, in the first two or three years of the financial crisis we had extra provisioning; but during the last two or three years in the assessments that are made regularly in June and September, we did not have special one-off factors.

It seems that the Bank's assets have become quite clean compared to the past. So it seems that extra provisioning or cushioning because of this assessment will not take place. Also the government is worried about the Bank's asset quality, but I think it's more of a preparatory attitude so it does not mean though banks have hidden low quality assets and next year with the interest rate hike of the US, we might have a more difficult economy so it might be like the government is preparing for this move later on. Regarding dividends, let me give you an answer. At this point in time it's not very easy for me to give you a very active opinion related to dividends because we need to close in Q4 and we have a lot of uncertainties. However, what I would like to make clear is that firstly, we understand very well the market expectations.

We know investors and analysts are quite interested in dividends and we actually hike up our dividend payout ratio and the market quite welcomed this move. So, we understand fully the expectations of the market. Secondly, a limiting factor to dividends is the capital adequacy ratio. So by 2019 we have to meet Basel III requirement, but for us and I think for most of the financial sector it will not be a very limiting factor. Thirdly, within our Group within Shinhan, there is a low growth period that we're all going through so taking that into consideration, the ROE of the banking sector is quite low. So taking all of those factors into consideration, we need a very flexible and aggressive capital policy and we are fully aware of this internally and we are going to take action to do this. I hope that explained my intention. Thank you very much.

Hwang Seok-Kyu, Kyobo Securities.

I'm Hwang Seok-Kyu from Kyobo Securities. First of all, for this year the loan asset growth has been very strong and so the topline growth has been very stable. However recently if you look at the economic conditions, if we make predictions going forward for next year, I don't think the economic environment will be very favorable so this year's growth level do you think that will continue into next year? The nominal GDP growth has lowered to 3% and although it will rise slightly, it will be 4% according to consensus. Do you think the loan growth trend that you have seen this year will continue toward next year as well? That's my first question. And second question is the fintech has been an issue and recently Shinhan Financial Group, the Chairman and other executives, have expressed with regards to the Internet specialized banks a lot of preparations have been made.

Although you're not participating in this first round, if the relevant legislation is passed, I believe you'll become more proactive to fintech changes, this new trend. Do you think this will have an impact on the banking business? And with regards to this area, what kind of responses or strategies do you have? And another question is in the non-interest income side, you need to have more firm numbers in order to have some comfortable capital ratio numbers so in the non-interest income, there's still a lot of talk, however we have not been able to come up with a clear alternative. However, I do believe that you will make continuous efforts in this area. So what kind of a concrete plan or strategies do you have in this area?

With regards to loan growth our projections going forward. In the past in the case of last year and this year, the trends show that compared to real economic growth, we have a very strong growth exceeding that growth level. Last year the loans in the corporate sector was very strong and in the case of last year, Shinhan Financial Group has shown strong growth in the corporate sector. However, in the case of this year all banking sector has high level of retail loans and so compared to the real GDP growth, I do believe this level of loan growth has been rather exceptive. However, given the real estate market recovery, I think this loan growth has been in line with the recovery in the real estate market sector and we do have projections for next year.

Some analysts have very pessimistic views about next year. In the case of BOK, they believe that 3% level of growth is possible; but in the case of our Group, in line with the real economic growth we will continue to achieve optimal loan growth. That's our strategy going forward. However, internally last year or this year, we don't see strong loan growth that exceeds the real economic growth level if possible next year. Next year the property mortgage we don't think it will be as active as it has been in this year that is our judgment. I hope that has satisfied your question.

I am the CSO, my name is Kim Hyung-Jin. With regards to fintech, our responses and our strategies related to the Internet specialized banks. And as you have said, the channels that we aim for and the innovation, the products; in order to make them more customer oriented, the Internet specialized banks and the mobile banking and fintech related innovations incorporating these innovative technologies into the banking sector. This is the way forward. We do believe that this is the case and internally starting from several years back, we have made preparations for this. And especially with regard to fintech companies in order to share the growth and to incorporate their technologies into our area, last week we had the Shinhan futures rep demonstration.

We have selected seven companies in the fintech area to nurture and foster going into the future and we're going to go into the global market along with these companies. So, the fintech ecology will be supported by the Shinhan Financial Group and we intend to achieve shared growth with these companies. I think this is the best way to meet customer demand. In the case of Internet specialized banking area new changes, more convenient and more helpful and more entertaining services need to be provided. We know that this is the trend and so new and innovative services need to be provided. We are aware of this and we are aware that we need to make preparations for this so that we can leave a good impression with our customers and also we will continue to make efforts in this front. Thank you very much.

With regard to non-interest income, you are very much aware of our Company's situation. Anyways what I would like to say upfront is that non-interest income is not affected by the interest rate. However, the NIM structure and the marketable securities that we hold when there is interest rate fluctuations, the investment gains and the non-interest income actually helps us quite extensively. I would like to point out two things. This is something that I would like to boast about our Group. It's very difficult to enhance non-interest income, however in the case of our credit card business, we're showing very strong income growth. Although this is not 100% free from interest rate fluctuations, it's very flexible and elastic and so this is very solid.

The card business going forward although it's saturated in the domestic market, we will be able to seek out new markets and so we have high expectation going forward. And secondly, really starting from three years back the banking and other areas, the CIB and PWM has been initiated. So the banking customers will be provided with the capital market products, financial investment products, fees and commissions and in case of companies, investment gains are also in that. Because we have already been doing this for the past three years compared to our peers, we are a step ahead of our rivals. So this convergence of banking and financial investment area, I think we will be able to see visible results going forward. So, this will be a key strength of our Group in the future.

Hyun Soo Shim, KB Investment & Securities.

As was mentioned before, the loan last year or this year they are not as high as this year and last year for the loan growth. I think for NIM, there will be more interest. Of course you will be impacted by the government's interest policies, but internally when do you think you will have NIM turnaround or can you forecast NIM in the future? Second question is about the account switching system that will soon be implemented. It seems that there are many new products coming out, but it seems that there is no leader in the account switching system yet. Can you elaborate in more detail about whether you are on guard for this account switching system or do you have a very aggressive strategy to really grab the market for account switching system? A simple fact is that in the non-operating area you had a lot of income, about KRW70 billion of increase. Can you elaborate on why you have that increase?

Regarding the margin, our forecast is the following. As you can see in the materials, Shinhan Bank's NIM went down 2 bp. The decline was quite a slowdown compared to the past, which was quite encouraging. In Q2 IR I mentioned that it will be stabilized starting from Q2 and fortunately our results followed my predictions. Forecasts for the future NIM, the BOK base rate of course will have an impact on the NIM and if fortunately BOK base rate doesn't go down, then it seems that we will have stabilization and the funding interest rate will impact the stabilization of the NIM going forward. Regarding the account switching system I would like to elaborate.

From July 1, we had the account switching system that was possible for individuals and from October 30 you can change it online and we will also have it possible for you to have your account switched when you visit the branches. When we did a survey on our customers about their preferences, we saw Shinhan was the leader in the preference with 19.5%. We have seen many benefits for the customers that have been going down for the main bank that they use but we are fully aware of this change and in order for us to meet this demand, we're going to come up with new products and new services to meet the demand and necessities of our customers.

So, we have special accounts in July for our main bank users and we're going to come up with differentiated products for our users now and in the future as well. In addition, there will be many differentiated channels like kiosks and others that we'll be preparing and we're going to open them in November. Also we are going to have [S-banks] opened and non face-to-face channels will be opened and in the smart customer centers we are going to have a team to respond to the non face-to-face channels to respond to the new account switching system. Regarding whether we are on guard or whether we're going to be aggressive, we can just say that we are going to be genuine in our attitude toward our customers and to try our best to meet their demands and I think that we can satisfy our customers in that way.

Regarding non-operating income in Q3 for the bank and credit card, we had some sizable income. For example, Samsung C&T where we sold off some of the shares we had and in the case of China, we have a subsidiary doing NPL business and in Q3 this company was liquidated so with this liquidation on a pre-tax basis, we had more than KRW100 billion of income. Also in case of credit card, we had Visa shares that we also disposed off so more than KRW70 billion of income. So when we added all that, we led to more non-operating income and in the case of Dhyan Wire I mentioned before and we had some writeback of the provisioning so I think that was why we had such positive results.

Kim Chin Pang, HMC Securities.

In the case of Shinhan Card, the size is rather robust compared to initial expectations. What is the trend regarding the market share and in the future what kind of strategies do you have for the market share in the credit card business? In the case of NIM, though there has been some impact from the interest rate decline. However, there is a lower NIM for all the banking sector. But in the case of Shinhan Group, you have a solid card business and the low interest deposit is also going to double-digit number range and loan assets also are achieving excess growth over the nominal GDP growth. So I think you need to focus more on margins so that you need to protect this margin even in unfavorable interest rate environment so strategically what kind of [process] are you taking for margin protection? What is the priority between margin protection and loan growth?

The card market share has been reported in the media as being lower compared to the past so this is not a structural trend. This is a temporary [offset] and we have also been impacted by some seasonal factors. The case of the card market is quite stable and in order to gain market share we need some bleeding in order to make some expansions. If you look at the real economic situation, it's not very favorable so there are not many card companies that are engaging aggressive strategies. So, we will maintain our market share at the current level. And with regards to the NIM, we're at historical lows that is agreed upon by everybody within the Bank and outsiders like you Mr. Kim, everybody is concerned.

However, we do believe that the most important income sources of interest income and margin NIM for the commercial bank and in order to raise the NIM, we do have several strategies. For instance even if we sacrificed a bit for each target market, we can grow our loan assets to secured margins. And in the case of collective loan market, we will engage in more stringent loan screening to raise margins and rather than mortgages, the high creditworthy unsecured loans we will raise that segment going forward. Let me provide some supplementary facts. In Q3 our market share was 22.5% in Shinhan Card and in Q2 it was at 23% so there has been a 0.5% decline for the card business. We don't believe that this number is very significant. In the case of Shinhan Card, we have achieved economies of scale and so we will not engage in excessive competition because of the slight decline. That is all.

Jung Moo, Franklin Templeton.

I'm Jung Moo from Templeton. I have one question regarding margin of Company, restructuring, and additional support. It seems that there is a slight change from the past because according to media in Sungdong Shipbuilding extra support, it was said that there will not be extra provisioning by bank, but I think this was quite surprising. So my question is in these changing times, what kind of implications can our investors get that is to say it seems that maybe it's a signal from regulatory to more fee-based market finance. So can you elaborate on what you think this move signifies?

I think that was a quite ambiguous question and hard to answer, but let me try to answer it in part. I can't give you a clear-cut answer. But in the current environment, it is true that the ambiance or environment is a little bit different from the past. Whether this is temporary or whether this will last, I can't really say at this point. But I just can say that bank-centered restructuring compared to the past, we will have more headway in bank restructuring and in similar methods. So we have high expectations, but we also have some concerns, but we believe that this will probably occur more often in the future.

(inaudible), CIMB Asset Management.

I want to check about exposure to troubled corporates. For the industry exposure to troubled corporates total loan exposure at troubled corporates is KRW86 trillion or 11% of corporate loan book. What is that ratio for Shinhan? Thank you.

You gave us some numbers, however internally the criteria for assessing that is not very clear at this point. So, internally we need to look more into this issue. However, what I'd like to say at this point is that for [Daifo] and other companies have been given the (inaudible) and in the first half as you have seen, we have made sufficient preparation for those kind of companies especially the SMEs. We have been able to minimize the impact from the SME so we'll continue to control our exposure to these troubled companies. So from this standpoint, this 11% figure I feel that it's a rather excessive figure for our Bank. This is a cautious response to your question.

Eigen Hoo, UBS Securities.

I'm Eigen Hoo from UBS Securities. In Q3 for corporate provisioning has gone down and can you give us a breakdown between the large corporations and SMEs? In particular for SMEs when you look at the delinquency ratios for real estate, it seems that with the real estate boom it has really gone down but where most other businesses including homeowners and SOHOs, the situation is quite different. Can you tell about non-real estate businesses for SMEs as well?

Overall for SMEs delinquency ratio is quite stable continuously. Of course regarding the asset growth until Q3 it was 9.6% growth so it's true that it seems that we are in fact increasing. So we don't have a lot of delinquencies going up because of the denominator impact, but for June it was 0.48% for more than six months so it's quite stable. And for real estate and other lease businesses, for the SOHOs, it's 0.37% . So as of last year-end or the year-end before that, it's quite stable compared to those two years-ends. In reality taking into consideration the variability of the real estate market, we are quite vigilantly monitoring these trends.

Also because loans are increasing at a fast pace regarding the loan limitation or the speed of loan growth, we are keeping a close eye on this so that we are taking care of our asset quality as well. Going forward asset quality for SOHOs or for real estate lease business, we do not predict a short-term deterioration of asset quality in those businesses. To add for SOHO loans, the collateral is at 3% and for the banks, our credit assessment screening is very detailed classifications. Also the policy is only for BBB and higher credit rating businesses. So each year, we see the borrowers who are higher than BBB going up each year. We will be quite delicately managing asset quality for these businesses. So, I believe that you don't need to be overly concerned about the asset quality of these businesses.

I don't think we have any more incoming questions. We would like to thank everyone for taking part in the earnings presentation for the third quarter of 2015. With this, we like to conclude today's earnings release presentation. Thank you very much for your presentation.

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.