Resona Holdings, Inc. · TSE:8308
Resona — H1 FY2023 Earnings Presentation
93 slides from Resona's earnings presentation, Dec 22, 2023
Slide 1: IR Presentation Material
IR Presentation Material Business Results for 1H of FY2023 and Future Management Direction December 2023
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: Review of the 1H of FY2023 / Initiatives / Capital Management
Review of the 1H of FY2023 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) 2
Slide 4: Review of the 1H of FY2023
Review of the 1H of FY2023 @ Resona Holdings, Inc. 3
Slide 5: Progress of Initiatives to Improve Corporate Value
Progress of Initiatives to Improve Corporate Value Progress rate against the full year target of net income attributable to owners of parent : Solid operating results 55.0% for the first half Progress rate against the full year target of core income*1 (excluding the impact of joint management de
Slide 6: Outline of Financial Results for the 1H of FY2023
Outline of Financial Results for the 1H of FY2023 Net income attributable to owners of parent : JPY82.5 bn HD consolidated FY2023 YoY change Progress rate 1H vs. Target*1 Down JPY0.1 bn, or 0.2%, YoY (JPY bn) % Progress rate against the full year target*1 : 55.0% [1Q : 23.6%, 2Q : 31.4%] (a) (b)
Slide 7: Initiatives to Improve Corporate Value
Initiatives to Improve Corporate Value 6
Slide 8: Our Vision for Resona’s Sustainability Management
Our Vision for Resona’s Sustainability Management Resona’s sustainability management Purpose Beyond Finance, Creating new customer for a Brighter Future. Issues confronting customers value by making use of and society as a whole Resona’s strengths Long-Term Vision Retail No. 1 < Medium- to long-term
Slide 9: Accelerate Initiatives to Realize “Retail No. 1”
Accelerate Initiatives to Realize “Retail No. 1” A change can be a golden opportunity! “Structure reforms : CX” that must be achieved now <Overview of the MMP> Adapt to changes in light of Further accelerate income and such trends as SX, DX, etc. cost structure reforms Development of Next-Genera
Slide 10: 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 • High-quality, stable profit issues confronting customers and regional communities Strengthening of value creation capabilities • Constant enhancement
Slide 11: Achieve Business Expansion by Leveraging both Net Interest Income and Fee Income
Strengthening of Value Creation Achieve Business Expansion by Leveraging both Net Interest Income Capabilities and Fee Income <Recent changes in the environment> Elimination of deflation: Economic resumption Deflation environment: A world with interest rates A world without interest rates Gr
Slide 12: BS Management in Anticipation of Monetary Policy Change in Japan
Strengthening of Value Creation Capabilities BS Management in Anticipation of Monetary Policy Change in Japan Restructure our yen interest rate portfolio Providing diverse solutions and highly convenient services via both real and digital channels Total assets JPY73.3 tn (End of Sep. ’23) Deposi
Slide 13: Composition of Loan Portfolio and Deposits
Strengthening of Value Creation Capabilities Composition of Loan Portfolio and Deposits Composition of loan portfolio Composition of deposits*3 21% JPY8.7 tn Fixed Rate 2% Fixed Rate Liquid 19% deposits 28% Individual Corporation Prime (JPY19.6 tn) (JPY14.5tn) *1 Liquid Rate Corporation 33% 35% depo
Slide 14: Loans Business: Business for SMEs, Housing Loan
Strengthening of Value Creation Capabilities Loans Business : Business for SMEs, Housing Loan Business for SMEs : Step up initiatives to accommodate both emerging funding needs and hikes in interest rates Funding needs that could materialize in response to changes in the environment Strengthen i
Slide 15: Fee Business: Asset Formation Support
Strengthening of Value Creation Capabilities Fee Business : Asset Formation Support Provide retail customers with access to the asset management know-how we have nurtured through 60 years of corporate pension asset management Resona Asset Management (AM)’s Purpose is “to ensure a prosperous Support
Slide 16: Fee Business: Business and Asset Succession, Cashless and DX Solution
Strengthening of Value Creation Fee Business : Capabilities Business and Asset Succession, Cashless and DX Solution Business and Asset Succession : Support smooth succession to accommodate growing needs in an ultra-aging society (⇒p.64) Evolving public awareness of business and A business based
Slide 17: Direction of Inorganic Strategy
Strengthening of Value Creation Capabilities Direction of Inorganic Strategy Step up inorganic investment as we enter a phase of capital utilization What value can we offer customers? Strengthening businesses that have affinity Winning customers not yet reached Securing specialist and with existing
Slide 18: Transforming two leasing companies into our consolidated subsidiaries
Strengthening of Value Creation Capabilities Transforming two leasing companies into our consolidated subsidiaries Expansion of leasing functions with high affinity with banking business Contributes to improve ROE ROIC +α (synergy, etc.) 10% level [Net income of total of two leasing companies] (JPY
Slide 19: Strengthening the Capital and Business Alliance with Digital Garage
Strengthening of Value Creation Capabilities Strengthening the Capital and Business Alliance with Digital Garage Deepening and challenging through further integration of Settlement / Digital / Data × Finance Contributes to improve ROE 2016 2022 Expanding cashless market*1 Amount handled JPY60 tn JPY
Slide 20: Financial Digital Platform
Strengthening of Value Creation Capabilities 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
Slide 21: The Merger of HD and KMFG (Planned in April 2024)
Development of Next-Generation Management Platforms The Merger of HD and KMFG (Planned in April 2024) Towards further strengthening the consolidated management of Group companies So Far Going forward KMFG functions contributed to speedy Shifting to a new organizational structure post-merger integrat
Slide 22: Initiatives to Reduction of Policy-Oriented Stock Holdings
Development of Next-Generation Management Platforms Initiatives to Reduction of Policy-Oriented Stock Holdings Policy for holding policy-oriented stocks*1 Since the capital enhancement with public funds, Resona Group has reduced the balance of the policy-oriented stocks to lessen the risk of price
Slide 23: Upfront Investment in Human Capital
Development of Next-Generation Management Platforms Upfront Investment in Human Capital Focusing on securing diversity, enhancing specialist strengths and ensuring well-being in human resource portfolio development Human resource (HR)-related investment during the MMP period: • Enhance employee enga
Slide 24: Resona’s 20 Years of Reform
Development of Next-Generation Taking on Further Challenges by Building on Management Platforms Resona’s 20 Years of Reform Entrench Purpose × Pass down the “DNA of Reform” ⇒ Accelerate sustainable improvement in social and corporate value A path toward sustainable improvement in value Improvement
Slide 25: Upfront Investment in IT
Development of Next-Generation Management Platforms Upfront Investment in IT Toward the development of next-generation intellectual capital supporting sustainable growth IT-related investment during the MMP period: • Business processes: Exhaustive overhauling +JPY40.0 bn (cumulative total of three y
Slide 26: Deliver New Value through the Integration of Digital and Face-to-Face Channels
Development of Next-Generation Deliver New Value through the Integration of Digital and Management Platforms Face-to-Face Channels 100% of day-to-day transactions can be completed via digital channels × Face-to-face channels serve for special occasions < A worldview we aim to realize > Resolve issue
Slide 27: Long-Term Sustainability Indicators
Strengthening of Development of Value Creation Next-Generation Capabilities Management Platforms Long-Term Sustainability Indicators Aiming for sustainable improvement in social and corporate value FY2022 (results) FY2030 (target levels) Value Creation Capability Indicator 10.5 mil cases 20 million
Slide 28: Capital Management
Capital Management @ Resona Holdings, Inc. 27
Slide 29: Capital Management
Capital Management Enter a new phase in which we can step up the utilization of capital ⇒ Aim for ROE*1 of 8% Financial soundness Growth investment Maintain the CET1 ratio*2 at the 10% range Organic ⇒ Expand loan assets, etc. with high returns relative to risk CET1 ratio as of Mar. ’23 : App
Slide 30: 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) 29
Slide 31: E (Environment): Retail Transition Finance
E (Environment): Retail Transition Finance Continue acting as a “running partner” for our retail customers and assisting them in the transition of their awareness and modes of behavior 1H of FY’23 transaction volume : JPY813.2 bn : The progress rate is 27.1% towards the MMP target (JPY3 tn / 3years)
Slide 32: 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 33: 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 34: 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 35: 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 Integrated management of response Declared the s
Slide 36: 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 2023 HD ranked #5 in 100 Best Companies Ratio of women 2023*1 FY2030 T
Slide 37: 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: 20 people from group banks and companies greater roles in child rearing Members consist of
Slide 38: 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 39: S (Society): Six Drivers for Realizing Human Resource Strategy
S (Society): Six Drivers for Realizing Human Resource Strategy Drivers Non-financial targets FY2022 ⇒ FY2030 Measures to achieve improvement Ratio of women line Enhance the content of assistance programs aimed at manager 31.4％ ⇒ 40％ empowering women [1] Leadership Ratio of mid-career employees
Slide 40: S (Society): Realize “Retail No. 1” through Business & Social Contribution Activities
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 Sust
Slide 41: 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 Independent outside directors only ind
Slide 42: 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 43: 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 44: 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 45: Reference Material (Financial Highlights)
Reference Material (Financial Highlights) 44
Slide 46: 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) 313.1 +21.7 285.2 +21.5 159.1 +18.1 58
Slide 47: Factors for the Changes in Net Income Attributable to Owners of Parent
Factors for the Changes in Net Income Attributable HD Consolidated to Owners of Parent (YoY Comparison) （JPY bn） Actual net operating profit +18.7 Gross operating profit +21.7 Net gains Operating on stocks expenses (including (3.0) Credit- equity derivatives) related NII from Other expenses, domesti
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 Trend of average loan balance 1H of FY’23 (YoY) [Average loan balance (JPY tn)] % represents YoY change Corporate (Excluding loans to HD) Average loan balance : +4.22%, Loan rate :
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 Corporate (Large companies and other) Of which, excluding loans to the Japanese Corporate (SMEs) gov. and others Other Corporate
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 Share of fixed rate residential housing loans Share of variable rate residential housing loans Apartment loan 3% 1%
Slide 51: Fee income
HD Fee income Consolidated Progress rate against the full year plan : 50.1% Succession related (down JPY1.1 bn, or 9.7%, YoY), etc. decreased, while settlement related (up JPY1.2 bn, or 3.6%, YoY) remained steady JPY bn, % represents [FY Results and plans] YoY change 37.3% 34.7% 33.8% 33% level
Slide 52: Major Fee Businesses(1) (AUM)
HD Major Fee Businesses(1) (AUM) Consolidated Balance of asset formation support products AUM income sold to individuals Foreign currency deposits, Public bonds, etc. (1) Insurance Insurance (2) Investment trust (sales commission) Fund wrap*1 (3) Investment trust (trust fees) Investment trusts*1 Ass
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) Asset and business succession related trust Private notes Commitment line, Syndicated loans, Covenants (2) M&A （JPY bn） (3) Real estate (individua
Slide 54: Credit Costs and NPLs
HD Consolidated Credit Costs and NPLs Total of Group Banks Credit costs NPL balance and ratio (Total of group banks) 英語 (Financial Reconstruction Act criteria)) FY2021 FY2022 FY2023 (JPY bn) 1H 1H Plan Unrecoverable or valueless claims 2% (a) (b) (c) (d) (e) Risk claims Net credit cost (1) (58.7) (7
Slide 55: Securities Portfolio
Total of Securities Portfolio Group Banks 英語 Securities portfolio*1 Status of policy-oriented stocks held*2 2022/3 2023/3 2023/9 Balance of listed stocks disposed in 1H of FY2023 Unrealized (JPY bn, before hedging) gains/(losses) (acquisition cost basis): JPY11.3 bn, (c) (a) (b) (c) (d) Available-
Slide 56: Capital Adequacy Ratio
HD Capital Adequacy Ratio Consolidated CAR (Domestic std.) and CET1 ratio (International std.) as of Sep. 30, 2023 were 12.57% and 14.36%, respectively, maintaining sound capital adequacy level Domestic standard (Reference) International standard ( JPY bn ) 2023/3 2023/9 Change ( JPY bn ) 2023/3 2
Slide 57: Earnings Targets for FY2023 (Released in Nov. 2023)
HD Consolidated Earnings Targets for FY2023 (Released in Nov. 2023) Total of Group Banks HD consolidated Common DPS Change from YoY YoY (JPY bn) Full-year original DPS target change change Net income attributable to owners of (1) 150.0 － (10.4) parent Common stock (annual) (4) 22.0 yen +1.0 yen Diff
Slide 58: (Reference) Outline of Financial Results of Each Segment
HD (Reference) Outline of Financial Results of Each Segment Consolidated 英語 FY2023 YoY (JPY bn) (JPY bn) 1H Change Gross operating profit (1) 252.3 +16.1 Customer Markets Operating expense (2) (154.8) (4.6) KMFG Divisions and Actual net operating profit (3) 97.5 +11.4 (1.5) Other Corporate Gross ope
Slide 59: (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 : Up JPY9.8 bn, YoY Actual net operating profit : Up JPY1.5 bn, YoY (JPY bn) (JPY bn) Gross operating profit +11.7 Gross op
Slide 60: Reference Material (MMP, Business Strategies)
Reference Material (MMP, Business Strategies) 59
Slide 61: What the Resona Group Should Look Like over the Long Term
What the Resona Group Should Look Like over the Long Term Accelerate initiatives to realize “Retail No. 1” Purpose Long-Term Vision 2023 “DNA of New MMP Reform” Beyond Finance, ~20 years Retail No. 1 for a Brighter Future. The "Solution Group" most The first 1,000 days of taking on supported by cust
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: KPIs under the MMP
KPIs under the MMP FY2022 (Results) FY2025 (Plan) Net income attributable to JPY160.4 bn JPY170.0 bn owners of parent Realize income and Consolidated core income*1 JPY163.6 bn JPY180.0 bn cost structure reforms Consolidated cost income ratio 67.4% Lower half of the 60% range Optimization of balance
Slide 64: 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 65: Business and Asset Succession Business
Business and Asset Succession Business Support smooth succession to accommodate growing needs in an ultra-aging society [Number of SMEs owners*1] [Trend in the appointment of [Number of leads for [Number of succession trusts of Resona] business successors by source*2] real estate-related deals of Re
Slide 66: Cashless and DX Solution Business
Cashless and DX Solution Business Improving convenience for individual customers / helping corporate customers go cashless and pursue DX [Expansion of the market for cashless settlement*1] Deliver value-added services, starting with supporting Secure conformity with the revised household finance and
Slide 67: 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 entire Provide solutions via local subsidiaries Asia region and the U.S. Bank Resona Perdania (Indonesia)
Slide 68: Capital Management of the MMP
Capital Management of the MMP Up to previous MMP From new MMP Utilize capital to improve profitability (building a positive cycle of capital creation Growth invest- ROE via capital utilization) increase ment Circulation "Improving soundness" through CET1 to enhance Capital RWA ROE*2 corporate value
Slide 69: Financial and Non-Financial Approaches to Improve Corporate Value
Financial and Non-Financial Approaches to Improve Corporate Value Measures to be implemented during the MMP period Improve profitability and asset efficiency via the proactive utilization of capital Step up investment in human capital ⇒ [Further development (Organic) Enhance higher risk-return lendi
Slide 70: Reference Material (Other)
Reference Material (Other) 69
Slide 71: 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 (End o
Slide 72: Resona Group's Conceptual Structure
Resona Group's Conceptual Structure The Resona Group aims at becoming a true “financial services group full of creativity.” Towards this goal, the Resona Group will: In a world that keeps changing, Purpose Corporate 1) live up to customers’ we're here to provide peace of mind so that we can welcome
Slide 73: 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 74: 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 75: Verification Process for Value of Holding of Policy-Oriented Stocks
Verification Process for Value of Holding of Policy-Oriented Stocks Discussing Measures (Qualitative Judgment) Quantitative Judgment Measures Consideration from Consideration from Risks/Returns Perspective Strategic Aspects ○Satisfaction Holding Quantitative Standard continues Discussing from Discus
Slide 76: 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 77: Stocks Held by Industry (September 30, 2023)
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 78: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments Management accounting by major group business lines (1H of 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 oper
Slide 79: 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'23 Resona Guarantee (1) Resona Holdings 100% 5.5 (0.0) (Sep.30 2023) FY'23 Kansai Mir
Slide 80: 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 FY'23 Kansai Mirai Leasing (14) Kansai Mirai Bank 100% 0.1 +0.0 (Sep.30 2023)
Slide 81: 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 (22) 0.1 +0.1 （Indonesia） Oldest Japan-affil
Slide 82: 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 83: 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 84: 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, 2023 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 85: 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 There are no regulations that have a significant impact on us, including the finalization of Basel 3, and we are
Slide 86: 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 JPY519.9 tn JPY189.8 tn The outstanding balance of current account at th
Slide 87: Stability Ratios of Japanese Companies
0% 100% 20% 40% 60% 80% 10% 30% 50% 70% 90% 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 88: 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 89: Long Term Business Results
Long Term Business Results 3 banks (RB,SR,KO) After KMFG integration (JPY bn) FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Gross operating profit 608.5 632.4 619.5 563.1 552.5 661.3 644.1 658.6 639.1 601.9 600.0 Net interest income 430.0 425.9 401.3 377.9 368.3 454.2
Slide 90: Credit Rating Information (Long Term)
Credit Rating Information (Long Term) Moody’s S&P R&I JCR Resona Holdings - - A+ - Resona Bank A2 A AA- AA Saitama Resona Bank A2 - AA- AA Kansai Mirai Bank - - - AA Minato Bank - - - AA 89
Slide 91: 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% 5.80% Other 8.96% 6.09% 5.80% 5.88% 6.08% 6.31% 6.23% Corporations 20.01% 5.89% 5.69% 5.98% 6.86% 6.35% 13.51% 13.44% 15.68% 15.48% 13.00% 12.39% Individuals, 13.47% 14.19% 15.39% 14.60% etc. 4
Slide 92: 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 https://www.resona-gr.co.jp/holdings/english/ 91
Slide 93: 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. https://www.resona-gr.co.j