Resona Holdings, Inc. · TSE:8308
Resona — H1 FY2021 Earnings Presentation
87 slides from Resona's earnings presentation, Nov 18, 2021
Slide 1: Business Results for 1H of FY2021 and Future Management Direction
Business Results for 1H of FY2021 and Future Management Direction November 18, 2021
Slide 2: Abbreviations and definitions; forward-looking statements
Abbreviations and definitions of the figures presented in this material are as follows: [HD] Resona Holdings, [RB] Resona Bank, [SR] Saitama Resona Bank, [KMFG] Kansai Mirai Financial Group, [KMB] Kansai Mirai Bank*, [MB] Minato Bank * [KU] Kansai Urban Banking Corporation and [KO] Kinki Osaka Ban
Slide 3: Table of Contents
Table of Contents Outline of Business Results for 1H of FY2021 p26 SX Carbon Neutrality and Updates on Major Businesses p27 SX Diversity & Inclusion p4 Outline of Financial Results for the 1H of FY2021 p28 DX Resona's DX Strategy p5 Breakdown of Financial Results p29 DX Digital Channel p6 Factors fo
Slide 4: Outline of Business Results for 1H of FY2021 and Updates on Major Businesses
Outline of Business Results for 1H of FY2021 and Updates on Major Businesses Efforts for Sustainable Growth Capital Management ESG Initiatives Reference Material 3
Slide 5: Outline of Financial Results for the 1H of FY2021
Outline of Financial Results for the 1H of FY2021 Net income attributable to owners of parent: JPY80.8 bn HD consolidated FY2021 YoY change Progress rate Up JPY24.4 bn, or 43.3%, YoY 1H v s. Target*1 (JPY bn) % Progress rate against the full year target *1 : 55.7% (a) (b) (c) (d) Actual net op
Slide 6: Breakdown of Financial Results
Breakdown of Financial Results Resona Holdings Total of group banks Total of Difference (Consolidated) Saitama (JPY bn) Resona group Resona YoY YoY Bank YoY YoY banks under YoY Bank KMFG (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (a)-(c) Gross operating profit (1) 323.1 +5.8 294.6 +5.3 166.2 (0.9) 59.5
Slide 7: Factors for the Changes in Net Income Attributable to Owners of Parent
Factors for the Changes in Net Income Attributable to HD Consolidated Owners of Parent (YoY Comparison) （JPY bn） Actual net operating profit + 5.7 Credit- Gross operating profit + 5.8 related expenses, Other net items, net +24.4, ＋6.1 (8.8) YoY Net gains Fees and on stocks commission Other GOP, (inc
Slide 8: 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 Trend of average loan balance, loan rate change 1H of FY’21 (YoY) [ Average loan balance (JPY tn)] % represents YoY change Average loan balance : +3.50%, Loan rate : (3) bps [Excl
Slide 9: 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 Of which, excluding loans to the Corporate (Large companies and other) Japanese gov. and Corporate (SMEs) others Corporate (Apa
Slide 10: Housing Loan Business
Total of Housing Loan Business Group Banks Composition of newly originated residential New housing loan origination Term-end loan balance housing loans by interest rate type JPY tn, % represents YoY change Share of fixed rate residential housing loans Share of variable rate residential housing loans
Slide 11: Fee Income
HD Fee Income Consolidated Consolidated fee income ratio*1 : 32.6%, progress rate against the full year plan : 50.2% Increased driven by growth in investment trust (+3.6 bn, +38.5%, YoY) , corporate solution (+2.1 bn, +17.0%, YoY) and Fund wrap (+1.3 bn, +51.2%, YoY). JPY bn, % represents YoY ch
Slide 12: Major Fee Businesses (1) Asset Formation Support Business
HD Major Fee Businesses(1) (Asset Formation Support Business) Consolidated Balance of asset formation support products sold to individuals (JPY tn) Balance of fund wrap*1: 13.7% 13.8% ’21/9 JPY671.7 bn (including corporation*3) 13.1% 1 % 5 Foreign currency deposits, Change in balance of investme
Slide 13: Major Fee Businesses (2) Trust, Corporate Solution, Real Estate
HD Major Fee Businesses(2) (Trust, Corporate Solution, Real Estate Business) Consolidated Trust-related business income (JPY bn) Resona Asset Management Trust solution offered for asset and business succession Pension/Securities trust Asset and business succession Number of new asset succession-re
Slide 14: Credit Costs and NPL
HD Consolidated Credit Costs and NPL Total of Group Banks Credit costs NPL balance and ratio (Total of Group Banks) (Financial Reconstruction Act criteria)) 2% FY2019 FY2020 FY2021 (JPY bn) 1H 1H Plan 1,000 Unrecoverable or valueless claims (a) (b) (c) (d) (e) Net credit cost Risk claims (1) (22.9)
Slide 15: Securities Portfolio
Total of Securities Portfolio Group Banks Securities portfolio*1 Status of policy-oriented stocks held 2020/3 2021/3 2021/9 Balance of listed stocks disposed in 1H of FY2021 Unrealized (JPY bn) gains/(losses) (acquisition cost basis): JPY14.3 bn, (a) (b) (c) (d) Net gain on sale: JPY20.1 bn (HD co
Slide 16: Capital Adequacy Ratio
HD Capital Adequacy Ratio Consolidated CAR (Domestic std.) and CET1 ratio (International std.) as of Sep. 30, 2021 were 11.78% and 13.91%, respectively, maintaining sound capital adequacy level Domestic standard (Reference) International standard ( JPY bn ) 2021/3 2021/9 Change ( JPY bn ) 2021/3 2
Slide 17: Earnings Targets for FY2021
HD Consolidated Earnings Targets for FY2021 Total of Group Banks HD consolidated Common DPS （JPY bn） Full-year Change from YoY YoY original target change DPS change Net income attributable to owners of (1) 145.0 － +20.6 parent Common stock (annual) (4) 21.0 yen - KMFG consolidated (2) 15.0 － +9.2 *1
Slide 18: (Reference) Outline of Financial Results of Each Segment
HD (Reference) Outline of Financial Results of Each Segment Consolidated FY2021 YoY (JPY bn) (JPY bn) 1H Change Gross operating profit (1) 228.6 +8.0 Customer Divisions Operating expense (2) (150.1) (1.9) Markets Actual net operating profit (3) 78.6 +6.2 and KMFG Actual Other Gross operating profit
Slide 19: (Reference) Outline of Financial Results of Customer Divisions
HD Consolidated (Reference) Outline of Financial Results of Customer Divisions (exclude KMFG) Personal banking segment Corporate banking segment Actual net operating profit : Down JPY2.6 bn, YoY Actual net operating profit : Up JPY8.8 bn, YoY (JPY bn) (JPY bn) Gross operating profit (2.2) Gross
Slide 20: KPIs under the MMP
KPIs under the MMP FY’21 FY’22 FY’20 1H of FY’20 1H of FY’21 (Target) (MMP) Net income attributable to JPY56.3 bn JPY124.4 bn JPY80.8 bn JPY145 bn JPY160 bn owners of parent KMFG JPY5.3 bn JPY11.2 bn JPY10.6 bn JPY15 bn JPY20 bn [Of which contribution to [JPY2.7 bn] [JPY5.8 bn] [JPY10.6 bn] [JPY15 b
Slide 21: Efforts for Sustainable Growth
Outline of Business Results for 1H of FY2021 and Updates on Major Businesses Efforts for Sustainable Growth Capital Management ESG Initiatives Reference Material 20
Slide 22: Message from the Top Management / Efforts for Sustainable Growth
Message from the Top Management / Efforts for Sustainable Growth Resona’s SDGs-Oriented Management Starting from issues Creating new customer value “Retail No. 1” customers and society by making use of the Resona’s strengths “ A Good Company” are confronting Business X Innovation Reforms with two "X
Slide 23: Resona's SDGs-Oriented Management / To Be a Good Company
Resona's SDGs-Oriented Management / To Be a Good Company A corporation’s reason for being is to deliver value to customers and the market. We therefore need to go back to the basics of business management and seriously ask ourselves a fundamental question: What do we offer society through our existe
Slide 24: To Be a Financial Service Group Contributing to Customer Success in SX
To Be a Financial Service Group that is the Most Significant SX Contributor to Customer Success in SX Overview of Resona Group’s SX Our recognition Resona’s Sustainable of the business environment Resonance sustainable society The accelerating trend toward SX growth Our role Achieve our vision • Ass
Slide 25: Long-term Sustainability Targets
SX Long-term Sustainability Targets (Established in June ’21) 1 2 3 Empowerment and Retail Transition Finance Carbon Neutrality Promotion of Women Cumulative total of JPY10 trillion Net zero CO2 emissions 10% or greater growth in the ratio (By the end of FY2030, of women in various senior (FY2021 to
Slide 26: SX Retail Transition Finance
SX Retail Transition Finance Helping retail customers update their awareness, transform their modes of behavior and thereby achieve steady transition SMEs supporting a sustainable society Promote in-depth dialogue Customer interview on SDGs (Oct. ’21~) Number of Number of Added value Develop
Slide 27: SX Carbon Neutrality
SX Carbon Neutrality Contribution to carbon neutrality and the popularization of renewable energy in the regional communities in which we operate Aim to reduce CO2 emissions*1 attributable to energy used by Resona Group to net zero by the end of FY2030 [CO2 emissions volume*2] [Breakdown of FY2020
Slide 28: SX Diversity & Inclusion
SX Diversity & Inclusion 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 2021 Create corporate value by drawing on diversity HD ranked #3 in 100 Best Compani
Slide 29: Resona's DX Strategy
DX Resona's DX Strategy Promote digital transformation (DX) to support the creation of new customer value and the acceleration of efforts to rebuild our foundations What Resona will look like after DX “Only selected in the banking industry”, Firstly certified in for the two consecutive years t
Slide 30: DX Digital Channel
DX Digital Channel Optimal solutions anytime, anywhere App is growing into the key channel used most Growing revenues from app-related transactions frequently by customers In step with expansion in the number of users, revenues [ # of users by channel*1] Group App from app-related transactions
Slide 31: DX System
DX System System structure reform with an eye on technological evolution System structure reform Focus on strategic investment by simplifying systems, low-code development and Accelerate expanding the agile development system system development speed Early provision of Resona products and serv
Slide 32: DX Financial Digital Platform
DX Financial Digital Platform Co-creation through wide-ranging external collaboration that transcends the conventional framework Develop a platform connecting regional financial institutions, partner companies from different sectors and local governments Take advantage of new technologies to enh
Slide 33: Rolling out Resona Products and Services at Regional Financial Institutions
Rolling out Resona Products and Services DX at Regional Financial Institutions, etc. Establish a “win-win” relationship via broader alliances with or without capital ties Deliver Resona’s unique products and services to an even wider range of customers Utilize API platforms and other solutions t
Slide 34: DX Face-to-face Channel
DX Face-to-face Channel Provide values through face-to-face channel Shifting branch mission from clerical work to the provision of solutions [Role of branches] Deliver new value Past Now Future Operational Customer Employee Centered reforms “No clerical work” Integrate consulting Focused on servic
Slide 35: Pursue More Group Synergies
KMFG Group Synergies Pursue More Group Synergies Early realization of group synergies through accelerated PMI based on making KMFG as a wholly-owned subsidiary Aim to realize synergies of JPY23.0 bn (vs FY’18) by the final year of the MMP (FY’22) [Group Synergies(compared with FY’18 level)] Develo
Slide 36: Group Synergies Channel Reform
KMFG Group Synergies Channel Reform Maintain customer contact points and low-cost operations Cut the number of branch locations approx. 20% within the MMP (3 years) even as we give due consideration to customer convenience [Number of manned branches and locations] (Act.) (Plan) Mar. 31, '23 Cost M
Slide 37: Asset Formation in the 100-Year Life Era
Customer needs surfacing under the COVID-19 pandemic Asset Formation in the 100-Year Life Era [Average life*1] [Investment trust income (JPY bn)] [Fund wrap income (JPY bn)] Changing [2015-2020] [2050-2055] + 38.5% + 51.2% customers' Men : 81.28 y/o Men : 85.45 y/o 13.2 3.8 issues 9.5 2.5 Women : 87
Slide 38: Supporting Smooth Succession to the Next Generation
Supporting Smooth Succession to Customer needs surfacing under the COVID-19 pandemic the Next Generation [Aging of business owners] [M&A income (JPY bn)] [Real estate income (JPY bn)] Changing [Average age*1] 62.49 y/o +72.4% +29.9% customers' [Ratio of business 60s : 48.2% 1.7 6.0 issues owners wit
Slide 39: Widespread Use of Cashless Payment
Customer needs surfacing under the COVID-19 pandemic Widespread Use of Cashless Payment [Cashless market-size*1] Target for 2025 [Debit card income(JPY bn)] 2019 Changing 2016 +30.8% Amount customers' handled 120 tn*2 issues 60 tn 2.0 1.5 Cashless Ratio 20% 26.8% 40% FY’20 FY’21 1H 1H Improve conven
Slide 40: Capital Management
Outline of Business Results for 1H of FY2021 and Updates on Major Businesses Efforts for Sustainable Growth Capital Management ESG Initiatives Reference Material 39
Slide 41: Capital Management
Capital Management Making efforts to further expand shareholder returns as our basic policy is to strike an optimal balance between financial soundness, profitability and shareholder return Financial soundness Profitability Secure sufficient equity capital under the current Continuously engage
Slide 42: ESG Initiatives
Outline of Business Results for 1H of FY2021 and Updates on Major Businesses Efforts for Sustainable Growth Capital Management ESG Initiatives Reference Material 41
Slide 43: 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 SDGs Promotion Committee Integrated management of response to climate Oct. ’18 change-relate
Slide 44: E (Environment): Step-up Approach to Support Customer Initiatives
E (Environment): Step-up Approach to Support Customer Initiatives Help customers expand their Encourage customers to join Help customers identify and knowledge of climate change efforts to address resolve latent issues and other social issues social issues An introductory booklet on SDGs “Private Pl
Slide 45: S (Society): Realize Retail No. 1 through Business & Social Contribution
S (Society): Realize “Retail No. 1” through Business & Social Contribution Activities Leveraging our strengths and management resources to contribute to the sustainable growth of local communities [Relationship between business strategy and social contribution activities] Priority social issues SDGs
Slide 46: S (Society): Initiatives to Help Resolve Region-Specific Issues
S (Society): Initiatives to Help Resolve Region-Specific Issues Facilitate an autonomous, virtuous cycle in regional economies and thereby realize a sustainable regional society and the co-creation of value in tandem with communities Establishment of “Regional Design Laboratory of Saitama” (SR: Oc
Slide 47: 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 Outside directors only Nominating independent
Slide 48: 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 Outside directors Company Legal/ Public Finance General affairs Finance/ ESG m
Slide 49: 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 50: ESG-Based Recognitions and Initiatives
ESG-Based Recognitions and Initiatives ESG-related Status of inclusion into ESG-based stock indices external evaluations [ESG indexes selected by GPIF (domestic stock)] MSCI (Seven-grade system from AAA to CCC) Aim to be included in all of four indices during the current MMP period AA MSCI（WIN） (Ful
Slide 51: Resona's Challenges Attracting Attentions from Outside (1)
Resona’s Challenges Attracting Attentions from Outside (1) Resona’s challenges towards “Retail No. 1” are highly evaluated by various institutions Highly evaluated for our initiatives to proactively facilitating DX (digital transformation) Digital Transformation Stock Selection (DX Stock) 2021 (HD
Slide 52: Resona's Challenges Attracting Attentions from Outside (2)
Resona’s Challenges Attracting Attentions from Outside (2) Resona’s challenges towards “Retail No. 1” are highly evaluated by various institutions Winning awards to commend leading companies of diversity Leading companies where Awarded the highest gold Obtained Platinum Ranked #3 in 100 wome
Slide 53: Enhancement of ESG Information Disclosure
Enhancement of ESG Information Disclosure Integrated Report of Resona Group （Issued in every July） Integrated Report explains in a simple manner to all stakeholders the Resona Group’s strengths and measures undertaken to create sustainable corporate value. https://www.resona-gr.co.jp/holdings/engli
Slide 54: Reference Material
Outline of Business Results for 1H of FY2021 and Updates on Major Businesses Efforts for Sustainable Growth Capital Management ESG Initiatives Reference Material 53
Slide 55: Resona Group at a Glance
Resona Group at a Glance Resona focuses management resources on Tokyo and Kansai metropolitan areas and retail banking business Resona Group is the largest retail-focused bank with full-line trust capabilities in Japan with a well-established customer base especially in Kansai Region due to crea
Slide 56: Resona Group's Brand Identity
Resona Group’s Brand Identity The Resona Group’s corporate name is derived from the Latin word (resonus) meaning “resonate” or “resound” in English We aim to establish “Resonance Model” by resonance between sustainable society and Resona Group’s sustainable growth We attach great importance to custo
Slide 57: Establish Resonance Model
Establish “Resonance Model” We will provide new value to customers, starting from the issues confronting customers and society, by moving beyond conventional banking frameworks through diverse resonance generated by new ideas and wide-ranging connections Drivers for Innovation Next-Generation Retail
Slide 58: Business Strategy and Rebuild Foundations (Overview)
Business Strategy and Rebuild Foundations (Overview) Business Strategies Medium-term Management Plan Retail × Trust Differentiation using our accumulated retail base and sophisticated trust functions • Provide trust, real estate and asset Further Asset and Business Succession management services in
Slide 59: Points of Focus in the Medium-term Management Plan toward 2030 SDGs
Points of Focus in the Medium-term Management Plan toward the 2030 Realization of SDGs Expected issues customers will face Key policies under the medium-term Theme in the next 10 years management plan Local Communities Adapt to a digitalized and global society Widespread use of cashless settleme
Slide 60: Roadmap for Securing Profit
Roadmap for Securing Profit Sustainable society Establish “Resonance Model” and x medium-to long-term income structure reform Resona’s sustainable growth (Billion yen) Consolidated Consolidated fee income ratio cost income ratio Loan yield decline Over 35% 60% level (3) bps /year Personnel and Furth
Slide 61: Breaking Free of the Bank Model (1)
Breaking Free of the Bank Model (1) ~Deliver New Value Employing New Ideas~ Reforms securing its agility and effectiveness employing CFT Thoroughgoing use of a business approach Adapt to changes that starts with customer needs Create new businesses An open innovation facility for supporting co-cre
Slide 62: Breaking Free of the Bank Model (2) Open Platform Strategy
Breaking Free of the Bank Model (2) ~Open Platform Strategy~ Orange: Initiatives to strengthen and broaden functions Green : Initiatives to expand customer base RCP*1 Group App Strategic alliances with Jointly developed 12 fin-tech companies with Team Lab, IBM Expansion of and Resona Digital I trans
Slide 63: Human Resources Management
Human Resources Management Downsizing and reallocating human resources to focus areas Group total personnel headcount will decrease to below the level prior to KMFG integration due to natural attrition Accelerate downsizing and reallocation of human resources on a group-wide basis by making KMFG
Slide 64: Loans for Individuals
Loans for Individuals Support customers’ asset building through Resona’s strengths as a front-runner in housing loans Balance of housing loans: Sep. 30 ’21 JPY13.4 tn, No.1 in Japan (as of Mar. 31, ’21) Start with the issues customers are Quality portfolio X confronting and their needs Initiatives
Slide 65: Outline of Resona Fund Wrap
Outline of Resona Fund Wrap Core products meeting customer needs for long-term asset formation Operation course according to customer's request Cost competitive ⇒ Lowest level of investment advisory fees for Standard course JPY3 million~, index fund investment the face-to-face offering products
Slide 66: SME Loans Business
SME Loans Business Provide 500,000 corporate customers, including SMEs, with a variety of solutions Customer base Customers’ issues Relation Expanding our customer base Changing customers' issues The number of companies naming by acting as a “running partner” the Resona Group as their main The
Slide 67: International Businesses
International Businesses Overall support for customers’ overseas expansion with a focus on Asia via overseas bases and partner banks Continue to provide meticulous services utilizing non-face-to-face Provide solutions via local subsidiaries tools even under the COVID-19 pandemic Bank Resona Pe
Slide 68: Outline of Resona Cashless Platform
Outline of Resona Cashless Platform Settlement infrastructure capable of resolving management issues confronting corporate customers and providing individual customers with more convenient services with smaller fees (2) Providing incentives outweighing others Increase sales Acquire Reduce settleme
Slide 69: Policy-Oriented Stocks: Verification Process & Reduction Plan
Policy-Oriented Stocks：Verification Process & Reduction Plan Verification process for value of holding of policy-oriented stocks ※Policy for holding policy-oriented stocks ⇒P14 Quantitative Discussing Measures (Qualitative Judgment) Measures Judgment Consideration from Risks/Returns Perspective Co
Slide 70: Sound Balance Sheet (September 30, 2021)
HD Sound Balance Sheet (September 30, 2021) Consolidated Total assets JPY75.3 tn Large Sound loan portfolio Loans Deposits Stable funding structure companies JPY and other*1 JPY Consists mostly of housing 58.5 tn Strong deposit base 39.3 tn 18.5% loans and small-lot loans to supporting low-cost
Slide 71: Measures to Build Multifaceted Business Relationships with Customers
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 Top-line Avg. # of Customer segments based on (thousands) Income Products Increase life-t
Slide 72: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments Management accounting by major group business lines (1H of FY2021) (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 oper
Slide 73: 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 FY'21 Resona Guarantee (1) Resona Holdings 100% 5.9 +1.0 (Sep.30 2021) FY'21 Kansai Mira
Slide 74: Consolidated Subsidiaries and Affiliated Companies (2)
Consolidated Subsidiaries and Affiliated Companies (2) 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'20 P.T. Bank Resona Perdania (14) 0.4 (0.1) （Indonesia） Oldest Japan-affi
Slide 75: Stocks Held by Industry (September 30, 2021)
10% 15% 20% 25% 0% 5% 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 76: 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) Sep. 30, 2021 Mar. 31, 2021 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 77: Composition of Loan Portfolio and Deposits
Composition of Loan Portfolio and Deposits Total of (September 30, 2021) Group Banks Loans*1 Deposits*3 Fixed Rate Liquid 2% Fixed Rate 19% deposits Personal 27% Banking Corporate Corporation Prime Bussiness Banking Liquid (JPY19.0 tn) Rate Unit Bussiness deposits 34% (JPY14.1 tn) Unit*1 33% 36% (JP
Slide 78: 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 2021] [End of March 2021] 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) 0.8% 0.8% 6.3% 15.2% 23.3% Liquid deposits
Slide 79: Migrations of Borrowers (1H of FY2021)
RB Migrations of Borrowers (1H of FY2021) Exposure amount basis*1 End of September 2021 Upward Downward Other Special Potentially Effectively Migration Migration Normal Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Bankrupt Repayments Sale Normal 98.3% 1.2% 0.0% 0.0% 0.0% 0.0% 0
Slide 80: List of Subordinated Bonds (September 30, 2021)
RB List of Subordinated Bonds (September 30, 2021) RB Amount Issue date Maturity Dividend rate outstanding JPY20.0 bn December 22, 2011 December 22, 2026 2.442% JPY35.0 bn March 14, 2012 March 15, 2022 1.78% JPY16.0 bn March 14, 2012 March 15, 2027 2.464% 79
Slide 81: 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 The implementation date of finalization of Basel 3 is scheduled for March 31, 2023. At present there is no regu
Slide 82: Outline of Eligible Capital under the Japanese Domestic Std.
Outline of Eligible Capital under the Japanese Domestic Std. Subordinated debts, preferred securities and non-convertible preferred shares Subordinated debts and preferred securities issued under the Basel 2 can be fully included in Core Capital as of the end of March 2014. These grandfathering
Slide 83: BOJ Current Account Balances
BOJ Current Account Balances Monthly average balance of BOJ current account (16 September -15 October) Total of institutions subject to the complementary City banks including deposit facility Resona Bank and Saitama Resona Bank JPY515.2 tn JPY187.1 tn The outstanding balance of current account at th
Slide 84: Long Term Business Results
Long Term Business Results 3 banks (RB,SR,KO) After KMFG integration (JPY bn) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020 Gross operating profit 655.2 637.1 608.5 632.4 619.5 563.1 552.5 661.3 644.1 658.6 639.1 Net interest income 463.9 443.0 430.0 425.9 401.3 377.9
Slide 85: Credit Rating Information (Long Term)
Credit Rating Information (Long Term) Moody’s S&P R&I JCR Resona Holdings - - A - Resona Bank A2 A A+ AA- Saitama Resona Bank A2 - A+ AA- Kansai Mirai Bank - - - AA- Minato Bank - - - AA- 84
Slide 86: Composition of Resona HD's Common Shareholders
Composition of Resona HD’s Common Shareholders 2.26% 5.03% 3.96% 3.93% 4.89% 8.96% 6.86% 6.65% 7.03% 7.17% Other 6.08% 6.09% 5.80% 5.88% 20.01% 20.01% 20.01% 5.89% 5.69% 5.98% 7.05% Corporations 6.35% 15.48% 13.51% 13.44% 15.68% 13.47% 14.19% Individuals, 15.39% 15.80% 41.95% DIC 5.83% 4.34% 4.58% 1
Slide 87: Proactively Communicating with Our Shareholders and Investors
Proactively Communicating with Our Shareholders and Investors Resona Group Website [For Shareholders/Investors] View IR presentation materials from here https://www.resona-gr.co.jp/holdings/english/ 86