Resona Holdings, Inc. · TSE:8308
Resona — FY2023 Earnings Presentation
98 slides from Resona's earnings presentation, May 20, 2024
Slide 1: Investor Relations Meeting for FY2023
Investor Relations Meeting for FY2023 - Business Results and Future Management Direction - May 20, 2024
Slide 2: Abbreviations and definitions; forward-looking statements
Abbreviations and definitions of the figures presented in this material are as follows: [HD] Resona Holdings*1 [RB] Resona Bank [SR] Saitama Resona Bank [KMB] Kansai Mirai Bank*2 [MB] Minato Bank *1 Resona Holdings merged and absorbed with [KMFG] Kansai Mirai Financial Group in April 2024 *2 [KU]
Slide 3: Points We Would Like to Communicate
Points We Would Like to Communicate Operating results for FY2023 exceeded forecasts [105.9%] as we made progress in building foundations 1 toward achieving "Profitability surpassing MMP target" Our aim for FY2024 is to be a year ahead of schedule in achieving the MMP targets, 2 excluding one-off cos
Slide 4: Agenda
Review of FY2023 and Forecast for FY2024 Initiatives to Improve Corporate Value Capital Management Aiming to Be a Company That Contributes Most to SX of Retail Customers (ESG Initiatives) Reference Material (Financial Highlights, MMP, Business Strategies and Other) 3
Slide 5: Review of FY2023 and Forecast for FY2024
Review of FY2023 and Forecast for FY2024 4
Slide 6: Outline of Financial Results for FY2023
Outline of Financial Results for FY2023 Net income attributable to owners of parent : JPY158.9 bn HD consolidated FY2023 YoY change Rate of FY2024 Target (JPY bn) 1H 2H Down JPY1.4 bn, or 0.9%, YoY, Progress rate against the full year target*1 : 105.9% (a) (b) change (c) (d) (e) (f) ROE (stock
Slide 7: Progress Status under the MMP
Progress Status under the MMP In FY2023, net income attributable to owners of parent was 105.9% in excess of our initial annual target, building on progress in initiatives aimed at achieving “Profitability surpassing MMP target.” Similarly, consolidated core income was 105.8% in excess of our ta
Slide 8: Rationale for FY2024 Earnings Targets (vs FY2024 in MMP)
HD Rationale for FY2024 Earnings Targets (vs FY2024 in MMP) Consolidated FY2024 earnings targets aim to, in effect, achieve the MMP target (JPY170.0 bn in FY2025) a year ahead of schedule Core income is expected to increase by JPY7.0 bn (actual basis*1) due to growth in NII in terms of both volu
Slide 9: Initiatives to Improve Corporate Value
Initiatives to Improve Corporate Value 8
Slide 10: The Resona Group’s Ideals and the Direction It is Aiming For
The Resona Group’s Ideals and the Direction It is Aiming For Accelerate initiatives to realize “Retail No. 1” Purpose Long-Term Vision 2023 “DNA of MMP ~20 Reform” years Beyond Finance, Retail No. 1 for a Brighter Future. The "Solution Group" most The first 1,000 days of taking on supported by custo
Slide 11: Financial and Non-Financial Approaches to Improve Corporate Value
Financial and Non-Financial Approaches to Improve Corporate Value • Business endeavors that start with addressing Resona’s sustainability management issues confronting customers and regional communities • High-quality, stable profit Expand top-line income by leveraging both Constant net interest inc
Slide 12: Roll Out the Two Businesses in the Deflation Recovery Environment
Roll Out the Two Businesses in the Deflation Recovery Environment The deflationary environment Deflation recovery Expand net interest income Exercise our fundamental strength supported by the advantage we derive Two from a deposit base consisting primarily of retail customers Focus on enhancing inco
Slide 13: BS Management Approach Aligned with Possible Hikes in Yen Interest Rates
BS Management Approach Aligned with Possible Hikes in Yen Interest Rates Work on (i) upgrading RAF*1 and (ii) strengthen BS management to achieve “Profitability surpassing MMP target” Turnaround and raise ROA via a revival of the deposit-lending business and a securities portfolio designed to su
Slide 14: Possible Impact on Earnings of JPY Interest Rate Hikes
Possible Impact on Earnings while JPY Interest Rate Hikes (provisional calculation) If the policy interest rate rises to 0.50%, ROE is expected to reach 9-10% Policy [Assumption for provisional calculation] interest rate Balance sheet at the end of March, 2024: Unchanged 0.50% (JPY bn) Reflectin
Slide 15: Accumulate High-Quality Fee Income
Accumulate High-Quality Fee Income Constantly introduce new businesses ⇒ Secure a robust recurring fee structure covering a broad range of sources Fourth consecutive year of annual growth in profit Historic-high profit Fee income expansion Past Present Future Time frame for yielding the profit effec
Slide 16: Proactively Execute Inorganic Growth Strategies
Proactively Execute Inorganic Growth Strategies Expand inorganic growth investment aimed at improving ROE Creating new value through co-creation Securing specialist and Strengthening businesses that have affinity with Winning customers not yet reached other human resources will existing banking oper
Slide 17: Integration of Face-to-Face and Digital Channels
Integration of Face-to-Face and Digital Channels 100% of day-to-day transactions can be completed via digital channels × Face-to-face channels serve for special occasions Resolve issues requiring Attractive human resources sophisticated solutions Personalized Superior consulting capabilities proposa
Slide 18: Upfront Investment in Human Capital
Upfront Investment in Human Capital Enhance investment in human resources supporting sustainable growth and structural reforms (CX) FY19 FY22 FY23 FY25 FY19 FY22 FY23 FY25 Act. Act. Act. MMP Act. Act. Act. MMP (People) Downsized the (JPY mil) 32,200 portfolio over the course of the 7.3 previous MMP
Slide 19: Upfront Investment in Intellectual Capital (IT)
Upfront Investment in Intellectual Capital (IT) Develop next-generation IT / systems supporting sustainable growth and structural reforms (CX) Expand strategic investment aimed at strengthening our capabilities to achieve CX and growth in top-line income [Amount of IT investment] Overview of key m
Slide 20: Credit Costs Control
Credit Costs Control Dispersed credit portfolio ⇒ Anticipate that a certain degree of risk control is feasible even when interest rates rise Average ratio of credit costs recorded over the long term (including during the aftermath of the Lehman Brothers bankruptcy) is (11.5)bps. Risk resilience am
Slide 21: Capital Management
@ Resona Holdings, Inc. 20
Slide 22: Capital Management
Capital Management Enter a new phase in which we can step up the utilization of capital ⇒ Aim for ROE*1 of 8% ROE : FY23 (act.) 7.2%, FY24 (target) 7.3% Financial soundness Growth investment Organic growth Maintain the CET1 ratio*2 at the 10% range ⇒ Expand loan assets, etc. with high return
Slide 23: How We Utilize Capital
How We Utilize Capital Capital allocation under the MMP (JPY bn) <Funding> <Utilization> 580.0 580.0 Current MMP 580.0 Previous MMP 395.0 Target on total shareholder Target on total shareholder return ratio “50% level” Expansion return ratio “Middle 40% Shareholder 240.0 range in the medium term”
Slide 24: The New Plan for Reduction of Policy-Oriented Stock Holdings
The New Plan for Reduction of Policy-Oriented Stock Holdings Create new value to be delivered to customers/ Create management resources that can be allocated to growth investment and structural reforms Drastically increase the pace of reduction Accelerate investment aimed of policy-oriented stock ho
Slide 25: Aiming to Be a Company That Contributes Most to SX of Retail Customers
Aiming to Be a Company That Contributes Most to SX of Retail Customers (ESG Initiatives) 24
Slide 26: Long-Term Sustainability Indicators
Long-Term Sustainability Indicators Aiming for sustainable improvement in social and corporate value FY2022 FY2023 FY2030 (target levels) Value Creation Capability Indicator 10.5 mil 11.8 mil 20.0 mil Value for Number of cases where solutions are provided cases cases cases customers and society Reta
Slide 27: E (Environment): Retail Transition Finance
E (Environment): Retail Transition Finance Enhance assistance to retail customers and continuously act as their “running partner,” helping them update their awareness and transform their modes of behavior FY23 transaction volume : JPY1.9 tn : The progress rate is 64.1% towards the MMP target (JPY3 t
Slide 28: E (Environment): Carbon Neutrality (1) -Scope1&2-
E (Environment): Carbon Neutrality (1) -Scope1&2- Initiatives to reduce greenhouse gas (GHG) emissions (Scopes 1 & 2) arising from the Group’s energy use Measures to achieve our carbon neutrality target (reducing CO2 emissions to net zero by the end of FY2030) Steadily reduce the volume of CO2 e
Slide 29: E (Environment): Carbon Neutrality (2) -Scope3-
E (Environment): Carbon Neutrality (2) -Scope3- Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio Committed to achieving net zero by 2050 in terms of GHG emissions from our investment and financing portfolio Identified interim targets to be ac
Slide 30: E (Environment): Carbon Neutrality (3) -Scope3-
E (Environment): Carbon Neutrality (3) -Scope3- Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio Basis for the calculation of financed emissions The volume of GHG emissions from each investee/borrower corporation is multiplied by the attribut
Slide 31: E (Environment): Our Response to Global Warming & Climate Change
E (Environment): Our Response to Global Warming & Climate Change Board of Directors proactively pursue Resona Sustainability Challenge 2030 and step up climate change countermeasures Board of Directors Group Sustainability Promotion Committee Oct. ’18 Declared the support of Report Supervise Integra
Slide 32: S (Society): Diversity & Inclusion (1)
S (Society): Diversity & Inclusion (1) Creating corporate value by drawing on diversity Step up the empowerment of women, to date a source of strength for the Group, ensuring that they serve as a driving force of value creation 2024 Ratio of women 2024*1 FY2030 Target HD ranked #2 in 100 Best Comp
Slide 33: S (Society): Diversity & Inclusion (2)
S (Society): Diversity & Inclusion (2) Main initiatives and the status of their progress 13th Resona Women’s Council (Apr. 23-Mar. 24) Step up initiatives to encourage male employees to play Members: approx. 20 people from group banks and companies greater roles in child rearing Members cons
Slide 34: S (Society): Overview of Our Human Resource Strategy
S (Society): Overview of Our Human Resource Strategy HR vision: Create a prosperous future by working with diverse partners from within and outside the Group whose aspirations resonate with ours Synergetic Value creation effect Well-being ⇔ Enhance three pillars Co-creation Professional Resonance En
Slide 35: S (Society): Six Drivers for Realizing Human Resource Strategy (1)
S (Society): Six Drivers for Realizing Human Resource Strategy (1) Drivers Non-financial targets FY22 ⇒ FY23 / FY30 Our policy for FY24 initiatives Continue implementing assistance programs Ratio of women line manager 31.4% ⇒ 32.8% 40% aimed at enpowering women [1] Leadership Ratio of mid-care
Slide 36: S (Society): Six Drivers for Realizing Human Resource Strategy (2)
S (Society): Six Drivers for Realizing Human Resource Strategy (2) [1] Leadership [2] Transcending boundaries [3] Speciality Enhanced the content of training for Developed the alumni network (Apr. 2024-) Expand investment aimed at developing department and branch managers Enhanced “boundary-
Slide 37: Social (S): Entrenchment of the Purpose
Social (S): Entrenchment of the Purpose Accelerate the sustainable improvement of social and corporate value through the entrenchment of the Purpose Resona Group ⇒ Resona Group‘s Purpose Conceptual Structure (p.77) A path toward sustainable improvement in value Improvement in brand value Customers
Slide 38: Social (S): Social Contribution and Regional Vitalization Initiatives
Social (S): Social Contribution and Regional Vitalization Initiatives Implement initiatives that transcend the framework of finance in our market areas: Utilize the framework of an “advanced banking service company” under the Banking Act Saitama Kansai Prefecture Regional Design Laboratory of Saitam
Slide 39: Social (S): Helping Raise Financial Literacy
Social (S): Helping Raise Financial Literacy Promote financial and economic education tailored to meet needs in each age group in order to enhance our asset formation support functions Main initiatives Initiatives that leverage strengths and resources we possess as a financial group Resona Group
Slide 40: G (Corporate Governance): Sophisticated Corporate Governance System
G (Corporate Governance): Sophisticated Corporate Governance System The first Japanese banking group which adopted a committee-based corporate governance structure in 2003 for management transparency and objectivity Majority of the Board members are independent outside directors Independent outs
Slide 41: G (Corporate Governance): Roles, Skills, and Expertise Required to Directors
G (Corporate Governance): Roles, Skills, and Expertise Required to Directors Strengthening supervisory and decision-making functions through active discussions at Board of Directors meetings, which are rich in diversity The skills (experience / knowledge) especially expected of nominees for direct
Slide 42: G (Corporate Governance): Initiatives for Corporate Governance Evolution
G (Corporate Governance): Initiatives for Corporate Governance Evolution Our initiatives to improve the effectiveness of the Board of Directors’ operations Remuneration for directors and executive officers Outside directors’ meetings Compensation system for executive officers Outside directors c
Slide 43: ESG-Based Recognitions and Initiatives
ESG-Based Recognitions and Initiatives Status of inclusion into ESG-based stock indices*1 [ESG indexes selected by GPIF (domestic stock)] Aim to be included in all indices below during the current MMP period Our support for ESG-related initiatives ESG-related external evaluations at home and abroad
Slide 44: Communications with Shareholders and Investors
Communications with Shareholders and Investors Promote constructive stakeholder dialogue to sustainably improve our social and corporate value Results of dialogues held in FY2023 For institutional investors and analysts General Meeting of Presentation meetings ZOOM webinars Shareholders Investor r
Slide 45: Reference Material (Financial Highlights)
Reference Material (Financial Highlights) 44
Slide 46: Breakdown of Financial Results for FY2023
Breakdown of Financial Results for FY2023 Resona Holdings Total of group banks Difference (Consolidated) Saitama Kansai (JPY bn) Resona Minato Resona Mirai YoY YoY Bank YoY YoY YoY Bank YoY Bank Bank (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (a)-(c) Gross operating profit (1) 627.4 +27.4 567.2
Slide 47: Factors for the Changes in Net Income Attributable to Owners of Parent
Factors for the Changes in Net Income Attributable HD to Owners of Parent (YoY Comparison) Consolidated Actual net operating profit +15.6 （JPY bn） Gross operating profit +27.4 Net gains on stocks Operating (including Other GOP, expenses equity NII from net (11.8) derivatives) Credit Other domestic l
Slide 48: Trend of Loans and Deposits (Domestic Account)
Total of Trend of Loans and Deposits (Domestic Account) Group Banks Average loan / deposit balance, rates and spread Net interest income from domestic loans and deposits FY23 (YoY) NII from domestic loans and deposits began to grow, [Excluding loans to the Japanese gov. and others] achieving a t
Slide 49: Term-end Balance of Loans and Deposits
Total of Term-end Balance of Loans and Deposits Group Banks Term-end loan balance Term-end deposit balance JPY tn, % represents YoY change JPY tn, % represents YoY change (1)Corporate (Large companies and other) Of which, excluding (2)Corporate (SMEs) (1)Other loans to the Japanese (3)Corporate (Apa
Slide 50: Housing Loan Business
Total of Housing Loan Business Group Banks New housing loan origination Composition of newly originated residential housing loans by interest rate type JPY tn, % represents YoY change (1)Share of fixed rate residential housing loans (2)Share of variable rate residential housing loans 3% 1% 2% 4% 7%
Slide 51: Fee Income
HD Fee Income Consolidated Significant increase in 2H of FY23 1H of FY23 : JPY105.8 bn (down JPY2.9 bn, or 2.7%, YoY) ⇒ 2H of FY23 : JPY107.6 bn (up JPY7.8 bn, or 7.8%, YoY) Increased driven by growth in settlement related (up JPY2.8 bn, or 3.9%, YoY) , corporate solution (up JPY1.8 bn, or 6.6%,
Slide 52: Major Fee Businesses(1) (AUM)
HD Major Fee Businesses(1) (AUM) Consolidated AUM income Balance of asset formation support products sold to individuals (1) Insurance (1)Foreign currency deposits, Public bonds, etc. (2) Investment trust (sales commission) (2)Insurance (3) Investment trust (trust fees) (3)Fund wrap *1 (4) Fund wrap
Slide 53: Major Fee Businesses(2) (Succession, Corporate Solution, Pension Trust)
HD Major Fee Businesses(2) (Succession, Corporate Solution, Pension Trust) Consolidated Succession related income Corporate solutions business income (1)Private notes (2)Commitment line, Syndicated loans, Covenants (1) Asset and business succession related trust (2) M&A （JPY bn） FY2021 FY2022 FY2023
Slide 54: Credit Costs and NPL
HD Consolidated Credit Costs and NPL Total of Group Banks Credit costs NPL balance and ratio (Total of group banks) Increasing in FY23 was mainly attributable to (i) the absence of (Financial Reconstruction Act criteria)) reversal gains (recorded in connection with the upgrading of (1)Unrecoverabl
Slide 55: Securities Portfolio
Total of Securities Portfolio Group Banks Securities portfolio*1 Secure flexibility to develop 英語 our future interest income portfolio 2022/3 2023/3 2024/3 Divest low-margin foreign and yen bonds that have been hedged (JPY bn, before hedging) Net unrealized ⇒ Reduce negative spread risks and futur
Slide 56: Capital Adequacy Ratio
HD Capital Adequacy Ratio Consolidated CET1 ratio (International standard, the full enforcement of the finalized Basel 3, excluding net unrealized gains on available-for-sale securities) as of Mar. 31, 2024 was 9.90% The finalized Basel 3 was applied from the end of March 2024 Capital adequacy r
Slide 57: Earnings Targets for FY2024
HD Consolidated Earnings Targets for FY2024 Total of Group Banks HD consolidated DPS (JPY bn) Full-year YoY YoY change DPS change Net income attributable to owners of (1) 165.0 +6.1 parent Full-year dividend (forecast) (4) 23.0 yen +1.0 yen Difference (2) 16.0 +0.7 Interim dividend (5) 11.5 yen +0.5
Slide 58: Rationale for FY2024 Earnings Targets (YoY change)
HD Rationale for FY2024 Earnings Targets (YoY change) Consolidated JPY bn, approximate figures Core income (actual basis*1) +1.3 +8.5 (25.3) (6.1), +8.1 Fee income Operating +10.1 YoY NII from Succession expenses Other +4.6 domestic loans +4.4 items, Net income Interest and deposits Settlement net a
Slide 59: Outline of Financial Results of Each Segment
HD Outline of Financial Results of Each Segment Consolidated 英語 YoY (JPY bn) (JPY bn) FY2023 Change Markets Gross operating profit (1) 517.8 +40.3 Customer Corporate and Operating expense (2) (313.0) (10.1) +14.6 Other KMFG Divisions Actual net operating profit (3) 204.8 +30.1 (16.2) +2.9 Gross oper
Slide 60: Outline of Financial Results of Customer Divisions
HD Consolidated Outline of Financial Results of Customer Divisions (exclude KMFG) Personal Banking Segment Corporate Banking Segment Actual net operating profit : Up JPY15.5 bn, YoY Actual net operating profit : Up JPY14.6 bn, YoY (JPY bn) (JPY bn) Gross operating profit +21.7 Gross operating pr
Slide 61: Reference Material (MMP, Business Strategies)
Reference Material (MMP, Business Strategies) 60
Slide 62: Overview of the MMP
Overview of the MMP Accelerate initiatives to realize “Retail No. 1”: The first 1,000 days of taking on corporate transformation (CX) -From rehabilitation to taking on new challenges- Adapt to changes in light of such trends as SX, DX, etc. Further accelerate income and cost structure reforms St
Slide 63: Roadmap for Securing Profit
Roadmap for Securing Profit Aim for growth in core profit that will exceed outlays associated with forward-looking investment aimed at improving employee engagement and productivity, with our plan calling for achieving an ROE of 8% (JPY bn) Core income [including Interest on yen bonds, etc.] +17.0 R
Slide 64: Business for SMEs
Business for SMEs Steadily increase our asset balance by addressing issues customers are facing in addition to leveraging a tailwind arising from changes in the environment Resona’s unique features External environment Low birthrate and The customer base Customer-relations Climate change Macroeconom
Slide 65: Housing Loan Business
Housing Loan Business A high-quality portfolio equipped with profitability (high RORA) High sensitivity to interest rates Possible growth in demand for fixed-interest rate products Upsides of [Composition by interest rates (existing)] [Composition by interest rates (new)] interest rate hikes Var
Slide 66: Business and Asset Succession Business
Business and Asset Succession Business One-stop solutions that leverage our unique strength as a commercial bank equipped with full-line trust banking capabilities [Period of time necessary to complete transition [Trends in the appointment of [Succession related income] to successors*1] business suc
Slide 67: Cashless and DX Solution
Cashless and DX Solution Offer convenience for household finance and corporate transactions [Expansion in the cashless market [Settlement related income] after the COVID-19 pandemic] Corporate Individual (JPY bn) 76.5 [2016] [2023] Corporate Household transaction Resona finance 75.4 Cashless ratio*1
Slide 68: Integration of Face-to-Face and Digital Channels
Integration of Face-to-Face and Digital Channels Address diverse issues customers are facing by leveraging both face-to-face and digital channels Deliver new value Data utilization Deliver added value that can be offered Coordination via the use of digital channels between channels only via face-to-
Slide 69: Financial Digital Platform
Financial Digital Platform Co-creation through wide-ranging external collaboration that transcends the conventional framework Financial Digital Platform -Vision- Roll out Resona Group solutions to regional financial institutions Develop and expand an ecosystem that ensures Expand the scope of Ex
Slide 70: Asset Formation Support (1)
Asset Formation Support (1) Provide retail customers with access to the asset management know-how we have nurtured through 60 years of corporate pension asset management Expand value delivered through the asset management business Deliver value Asset formation Management company via the combined C
Slide 71: Asset Formation Support (2) [Corporate pension]
Asset Formation Support (2) [Corporate pension] Deliver value backed by Resona’s unique strength as a commercial bank equipped with full-line trust banking and pension management capabilities Issues confronting business corporations Issues confronting individual customers Ongoing improvement in wage
Slide 72: International Business
International Business Help customers align with changes in the business environment via the use of our overseas network Resona Group employees stationed at 10 overseas bases to cover the Provide solutions via local subsidiaries entire Asia region and the U.S. Bank Resona Perdania (Indonesia)
Slide 73: Analysis of Current Status with the Aim of Improving Corporate Value
Analysis of Current Status with the Aim of Improving Corporate Value PBR is currently on a recovery track [Trends in PBR] Aim for improvement in corporate value by both raising ROE and reducing capital costs 0.90 0.84 0.79 0.62 0.63 ROE 0.56 0.54 [ RORA × 0.47 0.50 Leverage following risk adjust
Slide 74: Reference Material (Other)
Reference Material (Other) 73
Slide 75: Resona Group at a Glance
Resona Group at a Glance Financial services group with a customer base of 16 mil individuals and 0.5 mil corporations and a full line of trust functions Extensive channel network centered on the Tokyo metropolitan area and Kansai region Corporate structure Customer base and business scale (As of
Slide 76: Resona Group’s Feature at a Glance
Resona Group’s Feature at a Glance A unique position that combines three strengths The largest retail-focused bank with full-line trust capabilities in Japan 1 The strengths of a trust bank Full-line trust capabilities Full range of trust and real estate functions within the bank 3 The strengths o
Slide 77: Strengthen the Consolidated Management of the Group
Strengthen the Consolidated Management of the Group Leverage the combined capabilities offered by all Resona Group companies ⇒ Improve the corporate value of Group companies ～ 2024/3 2024/4 ～ KMFG functions contributed to Shifting to a new organizational structure speedy post-merger integration (PMI
Slide 78: Resona Group's Conceptual Structure
Resona Group's Conceptual Structure The Resona Group's conceptual Structure expresses how we contribute society (Purpose), what we aim to be in society (Corpotrate Mission), what we aspire to be (Long-term Vision), and how we act (Resona Way / Resona Standards). The Resona Group aims at becoming a t
Slide 79: Resona Group’s Brand Identity
Resona Group’s Brand Identity The Resona Group’s corporate name was derived from the Latin word (resonus) meaning “resonate” or “resound” in English. We attach great importance to customers' voice. By adopting the corporate name Resona, we want to express our desire to build stronger ties with our c
Slide 80: Upgrade Segments
Measures to Build Multifaceted Business Relationships Total of Two Banks with Customers (RB, SR) Visible progress has been made through the increase in the number of “Resona Loyal Customers” Number of Customers Customer segments based on (thousands) Top-line Avg. # of Increase life-time profits by u
Slide 81: Basic Concepts on the Exercise of Voting Rights of Policy-Oriented Stocks
Basic Concepts on the Exercise of Voting Rights of Policy-Oriented Stocks Resona group has established the “Policy for the Voting Right Exercise Standards of Holding Policy-Oriented Stocks” in relation to exercise the voting rights of policy-oriented stocks. We have built a process to individually
Slide 82: Stocks Held by Industry (March 31, 2024)
5% 0% 10% 20% 25% 15% Fishery, agriculture and forestry Mining (Balance sheet amount) Construction Food product Textile product Pulp and paper Chemical product Pharmaceutical product Oil and petrochemical product Rubber products Glass and pottery Iron and steel Non-metal products Metal products Mach
Slide 83: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments Management accounting by major group business lines (FY2023) (JPY bn, %) Profitability Soundness Net operating profit after a deduction of credit cost Net profit after a Risk-adjusted Cost to Resona Group deduction return income Actual net operating
Slide 84: Consolidated Subsidiaries and Affiliated Companies (1)
Consolidated Subsidiaries and Affiliated Companies (1) Major consolidated domestic subsidiaries (excluding group banks) (JPY bn） Net YoY Name Line of business Capital contribution ratio Fiscal year income change FY23 Resona Guarantee (1) Resona Holdings 100% 10.7 (0.2) (Mar.31 2024) FY23 Kansai Mira
Slide 85: Consolidated Subsidiaries and Affiliated Companies (2)
Consolidated Subsidiaries and Affiliated Companies (2) Major consolidated domestic subsidiaries (excluding group banks)(Continued) (JPY bn） Net YoY Name Line of business Capital contribution ratio Fiscal year income change Made consolidated subsidiaries FY23 Shutoken Leasing (15) in Jan. 2024 Resona
Slide 86: Consolidated Subsidiaries and Affiliated Companies (3)
Consolidated Subsidiaries and Affiliated Companies (3) Major consolidated overseas subsidiaries (JPY bn） Net YoY Name Line of business Capital contribution ratio Fiscal year income change Banking business Resona Group 48.4% FY'23 P.T. Bank Resona Perdania (25) (2.2) (2.5) （Indonesia） Oldest Japan-af
Slide 87: Maturity Ladder of Loan and Deposit (Domestic Operation)
Total of Two Banks Maturity Ladder of Loan and Deposit (Domestic Operation) (RB, SR) Loans and bills discounted Deposits [End of March 2023] [End of March 2023] Within 6M 6 to 12M 1 to 3Y Over 3Y Total Within 6M 6 to 12M 1 to 3Y Over 3Y Total Fixed rate (1) 0.9% 0.8% 6.5% 13.9% 22.3% Liquid deposits
Slide 88: Migrations of Borrowers (1H of FY2023)
Migrations of Borrowers (1H of FY2023) RB Exposure amount basis*1 End of September 2023 Upward Downward Other Special Potentially Effectively Migration Migration Normal Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Bankrupt Repayments Sale Normal 98.2% 1.0% 0.0% 0.0% 0.0% 0.0% 0
Slide 89: Migrations of Borrowers (2H of FY2023)
Migrations of Borrowers (2H of FY2023) RB Exposure amount basis*1 End of March 2024 Upward Downward Other Special Potentially Effectively Migration Migration Normal Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Bankrupt Repayments Sale Normal 99.1% 0.4% 0.0% 0.0% 0.0% 0.0% 0.4%
Slide 90: Swap Positions by Remaining Periods
HD Swap Positions by Remaining Periods Consolidated Notional amounts of interest rate swaps (deferred hedge accounting applicable) by remaining period (JPY bn) Mar. 31, 2024 Mar. 31, 2023 Within 1 to 5 Over Within 1 to 5 Over Total Total 1 year years 5 years 1 year years 5 years Receive fixed rate
Slide 91: Responses to Further Tightening of Financial Regulation
Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation Major items of financial regulation being discussed internationally / Impact on Resona Regulations based on the finalized Basel 3 took effect from the closure of FY2023 operating results. However, the
Slide 92: Stability Ratios of Japanese Companies
0% 100% 30% 60% 80% 90% 10% 20% 40% 50% 70% 2007 Apr. - Jun. 2008 Apr. - Jun. 31.7% 2009 Apr. - Jun. 28.2% 2010 Apr. - Jun. 131.7% 2011 Apr. - Jun. 2012 Apr. - Jun. 2013 Apr. - Jun. 2014 Apr. - Jun. 2015 Apr. - Jun. 2016 Apr. - Jun. 2017 Apr. - Jun. 2018 Apr. - Jun. 2019 Apr. - Jun. at 10M-100M(JPY)
Slide 93: Proportion of Financial Assets
Proportion of Financial Assets Financial assets held by households*1 1% Japan 54% 4% 26% 11% Euro area 35% 10% 29% 2% 21% 4% 39% USA 12% 11% 28% Currency and deposits Investment Trusts Insurance and pension reserves Bonds Shares and equities Others *1. Prepared based on “Flow of Funds: Overview of J
Slide 94: Long Term Business Results
Long Term Business Results 3 banks (RB,SR,KO) After KMFG integration (JPY bn) FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Gross operating profit 632.4 619.5 563.1 552.5 661.3 644.1 658.6 639.1 601.9 600.0 627.4 Net interest income 425.9 401.3 377.9 368.3 454.2 435.9
Slide 95: Credit Rating Information (Long Term)
Credit Rating Information (Long Term) Moody’s S&P R&I JCR Resona Holdings - - AA- AA Resona Bank A2 A AA- AA Saitama Resona Bank A2 - AA- AA Kansai Mirai Bank - - - AA Minato Bank - - - AA 94
Slide 96: Composition of Resona HD’s Common Shareholders
Composition of Resona HD’s Common Shareholders 2.26% 3.96% 3.93% 5.03% 4.89% 6.86% 6.65% 7.03% 6.59% 6.08% 5.40% Other 8.96% 6.09% 5.80% 5.88% 6.08% 6.12% Corporations 20.01% 5.89% 5.69% 5.98% 6.86% 6.31% 6.35% 15.48% 13.51% 13.44% 12.14% Individuals, DIC 15.68% 13.47% 14.19% 13.00% etc. 50.11% 15.3
Slide 97: Proactively Communicating with Our Shareholders and Investors (1)
Proactively Communicating with Our Shareholders and Investors (1) Resona Group Website [Investor Relations] View IR presentation materials from here Usability and sufficiency of information of IR site are highly evaluated 96
Slide 98: Proactively Communicating with Our Shareholders and Investors (2)
Proactively Communicating with Our Shareholders and Investors (2) Resona Group Integrated Report (issued annually in July) This publication provides an easy-to-understand overview of the Resona Group’s features and initiatives aimed at achieving sustainable value creation. 97