Resona Holdings, Inc. · TSE:8308
Resona — H1 FY2024 Earnings Presentation
100 slides from Resona's earnings presentation, Nov 20, 2024
Slide 1: Investor Relations Meeting for 1H of FY2024
Investor Relations Meeting for 1H of FY2024 November 20, 2024
Slide 2: Abbreviations and definitions of the figures presented
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 and [KMFG] Kansai Mirai Financial Group merged on April 1, 2024 *2 [KU] Kansai Urba
Slide 3: Points We Would Like to Communicate
Points We Would Like to Communicate Results for the 1H of FY24 suggest a progress ratio of 69.2% against the initial target for full-year operating results 1 Upward revision of earnings targets for FY24: JPY175.0 bn / Excluding one-off expenses associated with the integration of MB: JPY190.0 bn le
Slide 4: Contents
Contents Review of 1H of FY2024 and Forecast for FY2024 ・・・・・・・・・・ p.4 Initiatives to Improve Corporate Value ・・・・・・・・・・・・・・・・・・・・・・ p.7 Capital Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ p.18 Aiming to Be a Company That Contributes Most ・・・・・・・・・・ p.23 to SX of Retail Customers (ESG Initiat
Slide 5: Review of 1H of FY2024 and Forecast for FY2024
Review of 1H of FY2024 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) 4
Slide 6: Outline of Financial Results for the 1H of FY2024
Outline of Financial Results for the 1H of FY2024 FY2024 YoY change Progress rate Net income attributable to owners of parent : JPY114.2 bn HD consolidated (JPY bn) 1H Rate of vs. Full year change target*1 Up JPY31.7 bn, or 38.4%, YoY (a) (b) (c) (d) Net income attributable to (1) 114.2 +31.7 +3
Slide 7: Rationale for an Upward Revision of FY2024 Earnings Targets
Rationale for an Upward Revision of FY2024 Earnings Targets (vs initial target) Upward revision to +JPY10 bn compared to the initial target, and +JPY20 bn compared to the MMP Aiming for a level of JPY190 bn, excluding MB integration costs Net gains Expenses related to the on stocks (JPY bn) integrat
Slide 8: Initiatives to Improve Corporate Value
Review of 1H of FY2024 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) 7
Slide 9: 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 10: Roll Out the Two Businesses in the Deflation Recovery Environment
Roll Out the Two Businesses in the Deflation Recovery Environment Two Expand net interest income (pp.10-12) income sources Expand the volume of fee income (p.13) Strength of our combined trust banking, Expansion of volume Hiking yen interest rates commercial banking and DX capabilities Net interes
Slide 11: BS Management Approach Aligned with Possible Hikes in Yen Interest Rates
BS Management Approach Aligned with Possible Hikes in Yen Interest Rates Turnaround and raise ROA via a revival of the deposit-lending business and a securities portfolio designed to support stable interest income End of Sep. 2024 Total assets JPY75.0 tn Large companies Composition of loan portfolio
Slide 12: Possible Impact on Earnings while JPY Interest Rate Hikes
Possible Impact on Earnings while JPY Interest Rate Hikes (provisional calculation) If the policy interest rate rises to 0.50%, we expect ROE (based on stockholders' equity) to reach 9-10% / ROE defined by TSE to reach 8% [Amount increase in gross operating profit] (JPY bn) ＜Assumption for provision
Slide 13: Accommodate Growing Funding Demand among Corporate Customers
Accommodate Growing Funding Demand among Corporate Customers in a Timely Manner as We Enter a Phase of Capital Utilization Achieve a turnaround and expansion in net interest income from domestic loans and deposits from the aspects of both volume and rates Resona’s unique features [Trends in average
Slide 14: 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 Fee income expansion Past Present Future Time frame for yielding the profit effect FY24: On track to achieve record-high profits for the fourth consecuti
Slide 15: A Robust Deposit Base Supporting the Two Businesses
A Robust Deposit Base Supporting the Two Businesses Maintain and expand our stable retail deposit base with high retention —a source of strength in a world with interest rates Overwhelming convenience with Digital Channels × Face-to-Face ⇒ High switching costs [Deposit balance breakdown] (JPY tn, [
Slide 16: Cost Control
Cost Control Expand strategic investment aimed at augmenting top-line income while curbing base costs Pursue both the expansion of upfront investment and the strict cost control Expansion of top-line (1H of FY24 +JPY32.0 bn, YoY) ＞ Increase in costs (1H of FY24 JPY(14.9) bn, YoY) ⇒ Reduction of
Slide 17: 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 FY24 FY19 FY22 FY23 FY24 Act. Act. Act. Plan Act. Act. Act. Plan (People) (JPY mil) 32,200 7.3 Progress in Downsized the 7.0 structural reforms portfolio
Slide 18: 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 19: Capital Management
Review of 1H of FY2024 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) 18
Slide 20: Capital Management (1)
Capital Management (1) Enter a new phase in which we can step up the utilization of capital ⇒ Aim for ROE(stockholders’ equity)*1 of 8% Financial soundness Growth investment Organic growth Maintain the CET1 ratio*2 at the 10% range ⇒ Expand loan assets, etc. with high returns relative to risk
Slide 21: Capital Management (2)
Capital Management (2) Shareholder return for FY2024 ＜1H (released in May 24)＞ ＜2H (released in Nov. 24)＞ Total shareholder Share buyback Share buyback return ratio Common DPS Approx. JPY20.0 bn (prospect) Up to JPY20.0 bn +1 yen (forecast) (Completion of acquisition by Jun. 11, 2024 and cancellatio
Slide 22: 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 23: Plan for Reduction of Policy-Oriented Stock Holdings
Plan for Reduction of Policy-Oriented Stock Holdings (Released in May 2024) 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-or
Slide 24: Aiming to Be a Company That Contributes Most to SX of Retail Customers
Review of 1H of FY2024 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) 23
Slide 25: 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 26: Revision of the Resona Group Environmental Policy
Revision of the Resona Group Environmental Policy Codify our stance on tackling climate change and preserving biodiversity via the involvement of the entire value chain Revision of the Resona Group Environmental Policy （Nov. 2024）*1 Updated the Resona Group Environmental Policy via a Board of Di
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 1H of FY24 transaction volume: Approx. JPY820 bn : Expanded such financing to a total of JPY2.7
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 [CO2 emission reductions due to the introduction of emissions to net zero by th
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 Progress toward achieving the inter
Slide 30: 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. 2018 Declared the support of Report Supervise Integr
Slide 31: 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 32: S (Society): Diversity & Inclusion (2)
S (Society): Diversity & Inclusion (2) Initiatives to empower diverse human resources to achieve success 13th Resona Women’s Council (Apr. 2023-Mar. 2024) Step up initiatives to encourage male employees to play Consisting of around 20 members with diverse attributes (titles, age, Group greater
Slide 33: 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 34: 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 empowering women [1] Leadership Ratio of mid-care
Slide 35: 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 36: S (Society): Widespread Recognition of the Purpose
S (Society): Improve Our Social Value and Corporate Value by Facilitating the Widespread Recognition of the Purpose Create a positive cycle arising from the widespread recognition and support of the Purpose among customers and society as a whole as well as among employees Resona Group Resona Group‘s
Slide 37: S (Society): Sponsoring B.LEAGUE (Jul. 2024)
S (Society): Sponsoring B.LEAGUE (Jul. 2024) ＜キービジュアル＞ “Create an exciting future” and “Contribute to the development of regional communities” Became a title partner*1 for B.LEAGUE, a professional male basketball league in Japan ＜Examples of activities under To enhance the corporate value of the
Slide 38: S (Society): Social Contribution and Regional Vitalization Initiatives
S (Society): Social Contribution and Regional Vitalization Initiatives Implement initiatives that transcend the framework of finance in our market area Saitama Make Saitama Prefecture the most Kansai Vitalize the economy of the Kansai area Prefecture livable prefecture in Japan Region through Expo 2
Slide 39: S (Society): Helping Raise Financial Literacy
S (Society): 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 Grou
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 Topics addressed in free discussion sessions Compensation system for executive officers Th
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 Interviews with institutional investors and analysts Feedback to management [Trend in the cumulative number of investors interviewed] Periodic reports
Slide 45: Reference Material
Review of 1H of FY2024 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) 44
Slide 46: Breakdown of Financial Results for the 1H of FY2024
Breakdown of Financial Results for the 1H of FY2024 Resona Holdings Total of group banks Difference (Consolidated) Saitama Kansai (JPY bn) Resona Resona Mirai Minato 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) 345.1 +
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 (JPY bn) Actual net operating profit +17.2 Core net operating profit*1 +13.2 Gross operating profit +32.0 Net gains on stocks (including Credit Other items, equity costs net Other GOP, Operating d
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 1H of FY24 (YoY) : Avg. loan balance +4.62%, Loan rate +3bps NII from domestic loans and deposits began to grow, [Excluding lo
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 loans to the Japanese (1)Other (2)Corporate (SMEs) gov. and others (
Slide 50: Housing Loan Business
Total of Housing Loan Business Group Banks Composition of newly originated residential New housing loan origination 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 (1)Apartment lo
Slide 51: Fee Income
HD Fee Income Consolidated Historic-high profit on a 1H basis, progress rate against the initial full year plan : 50.5% Increased driven by growth in AUM (up JPY3.1 bn, or 12.3%, YoY), settlement related (up JPY1.4 bn, or 3.8%) and corporate solution (up JPY1.3 bn, or 11.6%, YoY), etc. JPY bn, %
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)Investment
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 (1) Asset and business succession related trust (2) M&A (2)Commitment line, Syndicated loans, Covenants (3) Real estate (individual)
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) 英語 (Financial Reconstruction Act criteria)) FY2022 FY2023 FY2024 (JPY bn) 1H 1H Plan (1)Unrecoverable or valueless claims 2% (a) (b) (c) (d) (e) (2)Risk claims HD consolidated (1) (15.
Slide 55: Securities Portfolio
Total of Securities Portfolio Group Banks 英語 Securities portfolio*1 Status of policy-oriented stock holdings*2 1H of FY24 (Act.) 2023/3 2024/3 2024/9 Net unrealized (JPY bn, before hedging) gains Balance of listed stocks disposed (acquisition cost basis) : JPY21.0 bn (a) (b) (c) (d) Net gain on sa
Slide 56: Capital Adequacy Ratio
HD Capital Adequacy Ratio Consolidated CET1 ratio (International standard, the full enforcement, excluding net unrealized gains on available-for-sale securities) as of September 30, 2024 was 10.15% Capital adequacy ratio Factors for changes in Common Equity Tier1 capital in 1H of FY2024 2024/9 Cha
Slide 57: Earnings Targets for FY2024
HD Consolidated Earnings Targets for FY2024 (released in Nov. 2024) Total of Group Banks HD consolidated DPS YoY (JPY bn) Full-year Change from YoY DPS initial target change change Net income attributable to Full-year dividend (forecast) (4) 23.0 yen +1.0 yen (1) 175.0 +10.0 +16.1 owners of parent D
Slide 58: (Reference) Rationale for FY2024 Earnings Targets
HD (Reference) Rationale for FY2024 Earnings Targets (YoY change) Consolidated JPY bn, approximate figures +10.5 (25.3) Fee +26.5 income Operating Succession expenses +4.4 (9.7) Other NII AUM Other +4.6 +3.3 Personnel (5.0) items, Settlement expenses Income +16.1, Interest net +2.6 (10.0) income Net
Slide 59: (Reference) Outline of Financial Results of Each Segment
HD (Reference) Outline of Financial Results of Each Segment Consolidated 英語 FY2024 YoY (JPY bn) (JPY bn) 1H Change Markets Gross operating profit (1) 399.4 +79.0 Corporate and Customer +34.3 Operating expense (2) (220.5) (15.9) Other Divisions (46.0) Actual net operating profit (3) 179.2 +63.3 Perso
Slide 60: (Reference) Outline of Financial Results of Customer Divisions
HD (Reference) Outline of Financial Results of Customer Divisions Consolidated Personal Banking Segment Corporate Banking Segment Actual net operating profit : Up JPY29.0 bn, YoY Actual net operating profit : Up JPY34.3 bn, YoY (JPY bn) (JPY bn) Gross operating profit +37.9 Gross operating profi
Slide 61: Reference Material
Review of 1H of FY2024 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) 60
Slide 62: 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 63: 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 64: Progress Status under the MMP
Progress Status under the MMP Net income attributable to owners of parent for FY24 aims to be +JPY20.0 bn in excess of our MMP target, building on progress in initiatives aimed at achieving “Profitability surpassing MMP target.” ROE (stockholders’ equity) is 7.7%, with a target of 8% or more in
Slide 65: Roadmap for Securing Profit (Released in May 2023)
Roadmap for Securing Profit (Released in May 2023) 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 y
Slide 66: Housing Loan Business
Housing Loan Business Enhance the portfolio with high profitability (RORA = Net income / RWA) Upsides of High sensitivity Variable interest rate ratio (stock): interest rate hikes to interest rates Sep. 30, 2024 94％ Net income Multifaceted transactions Average number of Approx. 1.6 times*1 originati
Slide 67: Succession Business
Succession Business Support the smooth succession of businesses and assets amid an aging society [Financial asset holdings broken One-stop solutions leveraging the combination of our commercial banking capabilities and down by holder age group*1] full-line trust banking functions 70 or older 9.0%
Slide 68: Asset Formation Support (1)
Asset Formation Support (1) Contribute to the development of the investment chain by fully taking advantage of our asset management capabilities cultivated over the course of more than 60 years of corporate pension fund management At the time of the formulation of the plan*1 Sep. 30, 2024 What we ai
Slide 69: Asset Formation Support (2)
Asset Formation Support (2) Expand the balance of trust-based AUM, starting with addressing social issues Need to support post-retirement asset formation vehicles for both corporate and Public pension problem, extended longevity, inflation What individual customers Social customers The prolong
Slide 70: Cashless and DX Solution Business
Cashless and DX Solution Business Offer convenience for corporate transactions and household finance [Expansion in the cashless market Corporate Individual after the COVID-19 pandemic] Leverage the combined capabilities [2016] [2023] Corporate offered by all Resona Group companies Household Cashless
Slide 71: Deliver New Value via the Use of Digital Channels
Deliver New Value via the Use of Digital Channels 100% of day-to-day transactions can be completed via digital channels Expand contact points & transactions with customers via Contribute to the accelerating digital shift in a diverse range the App of transactions as well as operational streamlin
Slide 72: 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 73: 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 74: Inorganic Growth Strategies
Inorganic Growth Strategies Expand inorganic growth investment aimed at improving ROE 24/3期実行案件は効果が着実に発現 Creating new value through co-creation Winning customers 24/1月 not yet reached リース2社 *1完全子会社化 Securing specialist and23/12月 Strengthening businesses that have affinity with デジタルガレージとの資本業務提携強化 b
Slide 75: 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 76: Analysis of Current Status with the Aim of Improving Corporate Value
Analysis of Current Status with the Aim of Improving Corporate Value PBR is on a recovery track [Trends in PBR] Aim for improvement in corporate value by 0.90 both raising ROE and reducing capital costs 0.84 0.85 0.79 0.62 0.63 ROE 0.56 0.54 0.47 0.50 [ RORA × Leverage following risk adjustment
Slide 77: Reference Material
Review of 1H of FY2024 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) 76
Slide 78: 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 [Indiv
Slide 79: 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 80: 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 81: 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 82: 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 83: 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) Avg. # of Increase life-time profits by upgrading
Slide 84: 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 85: Stocks Held by Industry (September 30, 2024)
0% 5% 10% 15% Fishery, agriculture and forestry 20% (Balance sheet amount) Mining 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 Machiner
Slide 86: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments Management accounting by major group business lines (1H of FY2024) (JPY bn, %) Profitability Soundness Net operating profit after a deduction of credit cost Net profit after Risk-adjusted Cost to a deduction Resona Group of cost return income Actual
Slide 87: 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 FY24 Resona Guarantee (1) Resona Holdings 100% (Sep.30 2024) 5.0 (0.4) FY24 Kansai Mirai
Slide 88: 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 FY24 Resona Leasing (15) Resona Holdings 100% (Sep.30 2024) 1.1 +0.2 *1 Provi
Slide 89: 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*1 income change Banking business Resona Group 48.4% FY24 P.T. Bank Resona Perdania (25) （Indonesia） (Effective control approac
Slide 90: 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 2024] [End of March 2024] 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% 0.9% 8.0% 12.8% 22.6% Liquid deposits
Slide 91: Migrations of Borrowers (1H of FY2024)
Migrations of Borrowers (1H of FY2024) RB Exposure amount basis*1 End of September 2024 Upward Downward Other Special Potentially Effectively Migration Migration Normal Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Bankrupt Repayments Sale Normal 98.4% 0.5% 0.1% 0.0% 0.0% 0.0% 1
Slide 92: 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, 2024 Mar. 31, 2024 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 93: Responses to the Ongoing International Discussion over 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 94: Stability Ratios of Japanese Companies
30% 40% 90% 10% 20% 50% 60% 70% 80% 100% 0% 2007 Apr. - Jun. 2008 Apr. - Jun. 2009 Apr. - Jun. 2010 Apr. - Jun. 31.7% 28.2% 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 95: Proportion of Financial Assets
Proportion of Financial Assets Financial assets held by households*1 Investment Shares and Insurance and Currency and deposits Trusts equities pension reserves Bonds Japan 50% 5% 14% 24% 1% Euro area 34% 10% 21% 28% 3% USA 11% 12% 40% 27% 4% *1. Prepared based on “Flow of Funds: Overview of Japan, t
Slide 96: 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 97: 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 96
Slide 98: Composition of Resona HD's Common Shareholders
Composition of Resona HD’s Common Shareholders 2.2% 3.9% 3.9% 4.8% 4.4% Other 5.0% 6.8% 6.6% 7.0% 6.5% 6.0% 5.4% 8.9% 6.0% 6.0% 5.8% 5.8% 6.0% Corporations 5.8% 5.6% 6.3% 6.1% 20.0% 20.0% 20.0% 5.9% 6.8% 6.3% 13.5% 13.4% 11.6% Individuals, 15.6% 15.4% 12.1% etc. 13.4% 14.1% 15.3% 14.6% 13.0% 41.4% 4
Slide 99: Proactively Communicating with Our Shareholders and Investors (1)
Proactively Communicating with Our Shareholders and Investors (1) Resona Group Website Usability and sufficiency of information of IR site are highly evaluated [Investor Relations] View IR presentation materials from here 98
Slide 100: Proactively Communicating with Our Shareholders and Investors (2)
Proactively Communicating with Our Shareholders and Investors (2) Resona Group Integrated Report (issued annually) This publication provides an easy-to-understand overview of the Resona Group’s features and initiatives aimed at achieving sustainable value creation. Major contents p.22- Dialogue be