Resona Holdings, Inc. · TSE:8308
Resona — FY2017 Earnings Presentation
84 slides from Resona's earnings presentation, July 2018
Slide 1: Business Results for FY2017 and Future Management Direction
Business Results for FY2017 and Future Management Direction July 2018
Slide 2: Table of Contents
Table of Contents Resona Group at a Glance Efforts to Business Challenges for Sustainable Growth p3 Resona Group at a Glance p25 For Becoming the "Retail No.1" Financial Services Group p4 Population and Economics Scale of Resona's Primary Operating Base p5 Loan Portfolio, Interest Margin and Cost to
Slide 3: Resona Group at a Glance
Resona Group at a Glance Outline of Business Results for FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 2
Slide 4: 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 comprising approx. 16 million retail ac
Slide 5: Population and Economic Scale of Resona's Primary Operating Base
Population and Economic Scale of Resona’s Primary Operating Base Prefectures where Resona’s franchise is concentrated account for more than 30% of Japan’s population and GDP Such prefectures are comparable to some countries in terms of GDP Prefectural GDP in USD Compared Prefecture Population*1
Slide 6: Loan Portfolio, Interest Margin and Cost to Income Ratio
Loan Portfolio, Interest Margin and Cost to Income Ratio Loans provided to SMEs and individuals account for over 80% of total loans. Interest margins are higher relative to mega bank group Through operational reforms and efficient management, Resona mitigated the high-cost structure inherent in
Slide 7: Outline of Business Results for FY2017 and Updates on Major Businesses
Resona Group at a Glance Outline of Business Results for FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 6
Slide 8: Opening Remarks
Opening Remarks 1. Steadily implemented the income and cost structure reforms Net income attributable to owners of the parent excluding one-off gain: JPY150.5 bn Achieved the initial full year target Average loan balance continued to increase steadily while the speed of loan-to-deposit spread co
Slide 9: Outline of Financial Results for FY2017
Outline of Financial Results for FY2017 FY2017 FY2018 Posted JPY236.2 bn of net income attributable to owners of Resona HD consolodated v s. Target the parent (JPY bn) YoY change Jan. Target % 2018 Up JPY74.7 bn, or +46.2%, YoY, exceeding the full-year Net income attributable to target (JPY235.0 b
Slide 10: Breakdown of Financial Results
Breakdown of Financial Results Total of three group Difference (A)-(B) Resona Holdings banks (Excluding the effect of (Consolidated) (Non-consolidated) Realignment realignm ent of loan (JPY bn) (A) Saitama Kinki guarantee subsidiaries) (B) Resona of loan Resona Osaka YoY YoY Bank guarantee YoY Bank
Slide 11: Factors for the YoY Change in Periodic Profits
RHD Factors for the YoY Change in Periodic Profits Consolidated (JPY bn) Actual net operating profit (6.6) Management integration among 3 regional banks in the Gross operating profit (10.5) Kansai region +71.5 Realignment of loan guarantee subsidiaries +14.1 Net interest income (9.5) Credit- Net g
Slide 12: Trend of Loans and Deposits
Total of Trend of Loans and Deposits Group Banks Trend of average loan balance, loan to deposit Average loan / deposit balance, rates and spread spread (Domestic account) (JPY tn) Personal Corporate Initial plan Total of Total of 27.63 for FY2017 Avg. bal : Trillion Yen 3 banks 5 banks 26.73 27.11
Slide 13: Term-end Balance of Loans and Deposits
Total of Term-end Balance of Loans and Deposits Three Banks Term-end loan balance Term-end deposit balance JPY tn, % represents JPY tn, % represents YoY change YoY change Corporate (large companies and other)*1 Other 42.84 Corporate (SMEs) Corporate +5.2% Corporate (apartment loans) Individual 40
Slide 14: Housing Loan Business
Total of Housing Loan Business Three Banks Composition of newly originated residential New loan origination housing loans by interest rate type (JPY tn) Share of fixed rate residential housing loans Share of variable rate residential housing loans Apartment loan 3% 1% 2% 4% 7% 8% 11% 17% 12% Flat 35
Slide 15: Fee Income
RHD Fee Income Consolidated Consolidated fee income ratio at 30.4% for FY2017 JPY bn, % represents YoY change 250.0 30.4% 30％ RHD 2,500 28.5% 30.0% consolidated fee income ratio*1 27.2% 30.0% 200.0 Total of 5 Banks*3 205.0 187.7 25.0% Insurance RHD 2,000 14.0 consolidated 168.7 168.0 (+4.6%) 25.0%tr
Slide 16: Asset Formation Support Business
RHD Asset Formation Support Business Consolidated Balance of asset formation support products sold to individuals (JPY tn) Asset formation Balance of fund wrap: support product 16.0% 16.2% Mar. 2018 Approx. JPY220.0 bn 6 15.4% ratio*1 14.3% 13.7% FX deposits and Net inflow of funds (investment tru
Slide 17: Major Fee Businesses
Total of Major Fee Businesses Three Banks Trust-related business (JPY bn) (Reference) Number of new asset succession-related contracts Income from trust solutions offered for asset and business succession Income from Pension/Securities trust Will trust Asset succession Trust for transfer of +Estate
Slide 18: Credit Costs and NPL
Credit Costs and NPL Trend of NPL balance and ratio Trend of credit costs (Total of Three Group Banks) Total of 3 banks 5 banks (Financial Reconstruction Act criteria)) (JPY bn) FY2015 FY 2016 FY 2017 FY 2018 Plan 1,000 Net credit cost (RHD consolidated) (1) (25.8) 17.4 14.7 (18.5) Unrecoverable or
Slide 19: Securities Portfolio
Total of Securities Portfolio Three Banks Securities Portfolio *1. Status of policy-oriented stocks held Breakeven Nikkei average: Approx. 5,500 yen (JPY bn) 2016/3 2017/3 2018/3 Unrealized Balance of listed stocks disposed in FY2017 gain/(loss) (acquisition cost basis): JPY4.5 bn, Available-for
Slide 20: Capital Adequacy Ratio
RHD Capital Adequacy Ratio Consolidated CAR (Domestic std.) and CET1 ratio* (International std.) as of Mar. 31, 2018 were 10.65% and 9.50%, respectively, maintaining sound capital adequacy level * Excluding unrealized gain on available for sale securities Domestic standard (Reference) Internationa
Slide 21: Earnings Target for FY2018
RHD Consolidated Earnings Target for FY2018 Total of Group Banks RHD consolidated Common DPS （JPY bn） 1H Full-year YoY change Change from DPS Net (interim) income attributable previous year (1) 113.0 200.0 (36.2) to owners of the parent Common stock (annual) (4) 21.0 yen +1.0 yen KMFG *1 (2) 4.0 10.
Slide 22: Gap Analysis: FY2018 Target vs FY2017 Result
RHD Gap Analysis: FY2018 Target vs FY2017 Result Consolidated Net income attributable to owners of the parent (RHD consolidated) <Approximate figures> Tax loss recognized (JPY bn) 236.2 Sold KO to KMFG 71.5 Realignment of loan guarantee subsidiaries 14.1 KO 200.0 One-off gain KMFG’s Ownership
Slide 23: Outline of Financial Results of Each Segment (1)
RHD Outline of Financial Results of Each Segment (1) Consolidated Actual net operating profit of customer division increased, driven by improved performance of the Corporate Banking segment YoY (JPY bn) (JPY bn) FY2017 Change Gross operating profit (1) 492.5 +3.8 Personal Corporate Markets Customer
Slide 24: Outline of Financial Results of Each Segment (2)
RHD Outline of Financial Results of Each Segment (2) Consolidated Personal Banking Segment Corporate Banking Segment Actual net operating profit : Up JPY0.8 bn, YoY Actual net operating profit : Up JPY7.0 bn, YoY Spread income from deposits declined, more than Corporate solution and trust re
Slide 25: Efforts to Business Challenges for Sustainable Growth
Resona Group at a Glance Outline of Business Results for FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 24
Slide 26: For Becoming the "Retail No.1" Financial Services Group
For Becoming the “Retail No.1” Financial Services Group Social Strengths of Resona Group Create changes Customers’ Retail No.1 and Omni Omni Regional Omni Advisors Value issues Channel Progress of the mid-term management plan and final year’s KPIs based on the new 5 banks group structure KMFG KPIs
Slide 27: Progress of RHD's MMP and Prospect of KMFG's Profit Contribution
Progress of RHD’s MMP and Prospect of KMFG’s Profit Contribution RHD’s MMP Period (Till March 2020) KMFG 1st MMP Period 2nd MMP Period RHD RHD KMFG （RB・SR・KO） （RB・SR） ＋ （KU・KO・MB） ×51％ Further growth (JPY bn) 236.2 200.0 One-off gain 170.0 KMFG 85.6 One-off gain Contribution 168.4 10.0 15.0 23.0 158
Slide 28: Omni-Regional Strategy (1)
Omni-Regional Strategy (1) Broader alliances with regional financial institutions with or without capital ties Create Realize • Resona’s sophisticated functions and customers’ Broader and closer services “Retail No.1” × relationships value with customers • Create new values out of “win-win” collabor
Slide 29: Omni-Regional Strategy (2)
Omni-Regional Strategy (2) ~Obtaining the Largest Operating Base in the Kansai Region~ Strengthened presence as Japan’s largest retail-focused financial services group 1st section Branch Network (As of April 1, 2018) of TSE 51% Number of Branches (within the Kansai region) Kansai Mirai Financial Gro
Slide 30: Omni-Regional Strategy (3)
Omni-Regional Strategy (3) ~Overview of the KMFG’s Mid-term Management Plan~ New retail financial services model advancing together with the future of Kansai region Goal Banking group considered “absolutely essential” by customers Position of the first Build strong corporation among 3 banks throug
Slide 31: Omni-Channel Strategy (1) ~Digital~
Omni-Channel Strategy (1) ~Digital~ Provide added value to the daily lives of a wide range of customers develop a wide-ranging and long-term stock-type fee business 16 million+α New smartphone-driven business model Customers Release new Smart Accounts (from Feb. 2018) Inform all customers about
Slide 32: Omni-Channel Strategy (2) ~Face-to-face~
Omni-Channel Strategy (2) ~Face-to-face~ Make branches places for consultation promote deeper transactions with customers that have a strong level of need for consultations 16 million+α Reshuffle of branch network Customers Expand the number of “customers we can contact” Branch designs optimiz
Slide 33: Omni-Advisors Strategy
Omni-Advisors Strategy Develop personnel who can stand in the customer’s Offer value-added solutions shoes and see things from their perspective Customers to deliver “Customers’ Diversifying happiness is our pleasure” concerns/expectations 5 Attitudes of Omni-advisors “Customers' happiness is our
Slide 34: Outlook for Key Business Strategies: Progress of FY2017 and FY2019 Target
Outlook for Key Business Strategies: Progress of FY2017 and FY2019 Target under the 5 Banks Group Structure Asset formation support business Settlement business Succession business Balance of asset formation Income from asset formation Settlement-Related Income Succession-related income support prod
Slide 35: Asset Formation Support Business
Asset Formation Support Business Customers’ Needs Asset management and formation in the aging society and low interest environment Offer products that meet the customers’ needs Fund Wrap: Increasing steadily (began offering in Feb.’17) iDeCo: Offer actively as an entry product Balance in ’18/3： JP
Slide 36: Settlement Business
Settlement Business Customers’ Needs Offer a variety of payment methods via digitalization Initiatives to cashless payments Debit Card (Renewal in Oct. 2017) <Steady expansion in use due to raised profile> Increase set rate Expanded use Total no. of cards issued ： More than 1 million Include as stan
Slide 37: Succession Business
Succession Business Customers’ Needs Smooth asset succession from elderly people to the next generation 27% of Japanese are over 65*1 37% of SME owners are over 65*2 One-stop support through familiar channels Assign consultants to branches permanently No. 1 in Japan Solutions provided Boost
Slide 38: SME Business
SME Business Provide financial/non-financial support that reflects environmental changes Customers’ Needs and the companies’ stage Utilize expanding foundation Help companies that are just starting out 67,000 companies*1 have chosen us as the “main bank” The number of new corporations being esta
Slide 39: International Business
International Business Customers’ Needs Provide support/advice for overseas expansion Overseas Network Assist customers with their overseas operations Covering the Asia and US through overseas offices and Utilize overseas subsidiaries to provide sophisticated solutions partner banks Provide a
Slide 40: Individual Loan Business
Individual Loan Business Customers’ Needs Utilize diverse products/services to design lifestyles Further increase balances Maintain/improve profitability Outside sales areas Multifaceted Transactions with Use of residential housing loans Use the Internet to approach new customers Residential hou
Slide 41: Improve Customers' Convenience and Resona's Productivity Through Digitalization
Improve Customers’ Convenience and Resona’s Productivity Through Digitalization Clerical work volume FY2004 FY2015 Halve FY2021 Halve again （RB+SR+KO） Operational reform Halve the clerical work by promoting “Paperless”, “Cashless”, “Backless” Roll out to KMFG Digitalization Halve administration
Slide 42: Efforts to Digitalize Operations
Efforts to Digitalize Operations Digitalizing Branches General reception Require no seals Utilize at branches Provide to all client relations staff Biometrics Shortened waiting time Reduced burden Paperless of filling in forms No back office Digitalizing Head Office and Clerical Center
Slide 43: Corporate Governance System
Corporate Governance System The first Japanese banking group which adopted a committee-based corporate governance structure in 2003 for management transparency and objectivity Outside directors Tadamitsu Matsui Mitsudo Urano Yoko Sanuki Chairperson, Nominating Committee Chairperson, Compensation Cha
Slide 44: Direction of Capital Management
Resona Group at a Glance Outline of Business Results for FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 43
Slide 45: Direction of Capital Management
Direction of Capital Management Continue allocation policy of equal weight to 1) investment for future growth, 2) higher capital adequacy, and 3) enlargement of shareholder return Class 5 PS repurchased and cancelled in FY2017, realizing shareholders’ equity comprised solely of common shares CAR T
Slide 46: Reference Material
Resona Group at a Glance Outline of Business Results for FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 45
Slide 47: Resona's Challenges Attracting Attentions from Outside
Resona’s Challenges Attracting Attentions from Outside Resona’s challenges towards “Retail No.1” are highly evaluated by various institutions FY2017 Osaka City Female Came top in every category in 2017 30th Nikkei Achievement Leading Company the 2017 Pension Customer New Office Awards Mayor Award Sa
Slide 48: Example Activities of Omni-Advisors
Example Activities of Omni-Advisors Internal projects and awards programs to strengthen Resona’s overall ability to understand true latent needs of customers Examples of 21th Resona Brand Awards Presented in Jan. 2018 (Selected by vote of all employees from among monthly awards in first half of FY
Slide 49: Initiatives for Corporate Governance Evolution
Initiatives for Corporate Governance Evolution Self-evaluation of the board Performance share unit plan (PSU) Improve effectiveness of Board of Directors meetings by Introduced in July 2017 revising operations, etc. through annual board evaluations HD stock will be granted based on consolidate
Slide 50: CSR
CSR To raise corporate value through contributing to the creation of a sustainable society, Resona Group aims to resolve social issues as expressed in sustainable development goals (SDGs) “Re: Heart Club” (Employee volunteer group) joined various community activities Community [“Re: Heart Club” me
Slide 51: Sound Balance Sheet
Sound Balance Sheet Resona’s consolidated balance sheet (Reference) Balance sheet (simple sum of RHD, (as of March 31, 2018) KU, MB consolidated BS) Fixed-rate Fixed-rate Loans Deposits Loans Deposits loans*1,2 loans*1,2 JPY JPY7.6 tn and JPY and 35.2 tn JPY6.6 tn NCDs 28.7 tn NCDs JPY JPY Short-ter
Slide 52: Measures to Build Multifaceted Business Relationships with Customers
Measures to Build Multifaceted Business Relationships with Customers 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-time profits by upgrading Per
Slide 53: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments “RVA”*1 and “RAROC” as management indicators to measure profitability to allocated capital Management Accounting by Major Group Business Lines (FY2017) (JPY bn, %) Profitability Soundness Net operating profit after a deduction of credit cost Net pr
Slide 54: PL Summary and Factors for Consolidated and Total of Group Banks Difference
PL Summary and Factors for “Consolidated” and “Total of Group Banks” Difference PL Summary RHD consolidated / (RHD consolidated / Total of three banks) Total of three banks difference (Major consolidated subsidiaries) Total of group RHD Difference HL guarantee Resona Resona P. T. Bank banks effect o
Slide 55: Consolidated Subsidiaries and Affiliated Companies
Consolidated Subsidiaries and Affiliated Companies Major consolidated domestic subsidiaries (excluding group banks) (JPY bn） Net YoY Name Line of business Capital contribution ratio Fiscal year income change Credit guarantee Japan's highest class of residential housing FY ended Resona Guarantee Co.,
Slide 56: Capital Adequacy Ratio (RB, SR, KMFG)
Capital Adequacy Ratio (RB, SR, KMFG) Resona Bank Saitama Resona Bank KMFG (Consolidated) (Non-consolidated) (Consolidated) [A-IRB] [A-IRB] [F-IRB] Japanese Domestic Standard (JPY bn) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2017 2018 2017 2018 2017 2018 Change Change Change Capital ade
Slide 57: Stocks Held by Industry (March 2018)
10% 15% 20% 0% 5% Fishery, agriculture and forestry Mining Construction (Balance sheet amount) 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 58: Swap Positions by Remaining Periods
RHD Swap Positions by Remaining Periods Consolidated Notional amounts of interest rate swaps (deferred hedge accounting applicable) by remaining period (JPY bn) Mar. 31, 2018 Mar. 31, 2017 Within 1 to 5 Over Within 1 to 5 Over Total Total 1 year years 5 years 1 year years 5 years Receive fixed rat
Slide 59: Maturity Ladder of Loan and Deposit (Domestic Operation)
Total of Maturity Ladder of Loan and Deposit (Domestic Operation) Three Banks Loans and Bills Discounted Deposits [End of March 2017] [End of March 2017] 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) 1.6% 1.3% 6.4% 14.0% 23.4% Liquid deposits (1) 52
Slide 60: Composition of Loan Portfolio and Deposits
Composition of Loan Portfolio and Deposits Total of (March 31, 2018) Three Banks Loans*1 Deposits*4 Fixed Rate Liquid 4% Fixed Rate 19% deposits Personal 26% Banking Corporate Corporation Bussiness Banking Liquid (JPY13.4 tn) Prime Unit Bussiness deposits 34% Rate (JPY10.6 tn) Unit*2 46% Indivisual
Slide 61: Composition of Loan Portfolio by Base Rates
Total of Composition of Loan Portfolio by Base Rates Three Banks Corporate Banking Business Unit*1,2 Prime Prime Prime Fixed Rate Fixed Rate Fixed Rate Rate 27% Rate 26% Rate 25% 30% 31% 30% [March 31, [September 30, [March 31, 2017] 2017] 2018] Market Rate*3 Market Rate*3 Market Rate*3 43% 43% 45%
Slide 62: Composition of Deposits by Types
Total of Composition of Deposits by Types Three Banks Corporate Deposits Time Time Time deposits deposits deposits 21% 20% 20% [March 31, [September 30, [March 31, 2017] 2017] 2018] Liquid deposits Liquid deposits Liquid deposits 75% 77% 77% Individual Deposits Time Time Time deposits deposits depos
Slide 63: Migrations of Borrowers (1H of FY2017)
RB Migrations of Borrowers (1H of FY2017) Exposure amount basis *1 End of September 2017 Upward Downward Other Special Effectively Migration Migration Normal Doubtful Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Repayments Sale Normal 98.7% 0.5% 0.0% 0.0% 0.0% 0.0% 0.7% 0.7% 0.
Slide 64: Migrations of Borrowers (2H of FY2017)
RB Migrations of Borrowers (2H of FY2017) Exposure amount basis *1 End of March 2018 Upward Downward Other Special Effectively Migration Migration Normal Doubtful Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Repayments Sale Normal 98.7% 0.5% 0.0% 0.0% 0.0% 0.0% 0.7% 0.7% 0.0% -
Slide 65: List of Subordinated Bonds (March 31, 2018)
List of Subordinated Bonds (March 31, 2018) Amount Issuer Issue date Maturity Dividend rate outstanding JPY50.0 bn July 17, 2009 June 20, 2019 2.766% JPY50.0 bn March 4, 2010 March 4, 2020 2.084% JPY40.0 bn September 28, 2010 September 28, 2020 1.606% Resona Bank JPY25.0 bn June 1, 2011 June 1, 2021
Slide 66: Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation
Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation (No serious impact on Resona) Major items of financial regulation being discussed internationally For many items, international rules will be finalized hereafter and local authorities will start worki
Slide 67: 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*1 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 grandfatherin
Slide 68: Long Term Business Results
Long Term Business Results (JPY bn) FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Gross operating profit 901.8 775.0 763.1 768.6 805.2 769.3 739.5 678.3 667.0 655.2 637.1 608.5 632.4 619.5 563.1 552.5 Net interest income 599.1 561.2 5
Slide 69: Trend of Long-term Senior Debt Rating
RB Trend of Long-term Senior Debt Rating S&P Moody's R&I 2003 2004 2005 2006 2007 2011 2018 JCR A1 A+ A2 A A3 A- Baa1 BBB+ Baa2 BBB S&P Moody's R&I Baa3 BBB- JCR Ba1 BB+ 68
Slide 70: Composition of Resona HD's Common Shareholders
Composition of Resona HD’s Common Shareholders 2.26% 5.03% 3.96% 3.93% 4.89% Other 8.96% 6.08% 6.09% 5.80% 5.88% Corporations 20.01% 20.01% 20.01% 6.35% 13.51% 13.44% Individuals, etc. 15.68% 15.48% 41.95% DIC 5.83% 4.34% 4.58% 16.51% 50.11% 6.84% 6.50% 7.39% 34.17% 34.00% Financial 22.23% 19.72% 21
Slide 71: Reference Material: Macro Economic Trend
Reference Material Macro Economic Trend 70
Slide 72: Actual and Forecast of Real GDP Growth Rate
Actual and Forecast of Real GDP Growth Rate GDP Components*1 *2 (JPY tn) Private Consumpton Private Investment Public Demand *2 Net Exports 550 132.7 450 350 101.9 250 150 299.4 50 (0.8) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 73: Overall Economy in Japan (1)
10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 2003 Jan. - Mar. 2003 Oct. - Dec. 2004 Jul. - Sep. 2005 Apr. - Jun. 2006 Jan. - Mar. 2006 Oct. - Dec. 2007 Jul. - Sep. 2008 Apr. - Jun. 2009 Jan. - Mar. 2009 Oct. - Dec. 2010 Jul. - Sep. 2011 Apr. - Jun. 2012 Jun. - Mar. 2012 Oct. - Dec. 2013 Jul. - Sep. at 10M
Slide 74: Overall Economy in Japan (2)
Overall Economy in Japan (2) Enterprise Bankruptcy*1 (JPY bn) Total Debt (Construction/Real Estate Industries) (Number of cases) Total Debt (other) 1,500 2,500 Number of Bankrupt Case (right case) 2,000 1,300 1,500 1,100 1,000 900 500 700 0 500 '08/3'08/9*'09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '1
Slide 75: Employment
Employment Active job openings-to-applicants ratio*1 Wage / Salary*2 (times) (JPY thousand) 1.5 300 1.0 200 0.5 100 0.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 '07/1 '09/1 '11/1 '13/1 '15/1 '17/1 *1. Source: Ministry of Health, Labour and Welfare /
Slide 76: Exchange Rate / Corporate Earnings
Exchange Rate / Corporate Earnings Exchange Rate(USD / JPY)*1 Ordinary Profit for Japanese Corporations*2 (JPY) (JPY tn) 125 120 115 110 105 100 95 90 85 80 75 2003/1 2005/1 2007/1 2009/1 2011/1 2013/1 2015/1 2017/1 '18/5 *1. Source: Resona Bank *2. Source: Ministry of Finance / Financial Statements
Slide 77: Trend of Interest rate and financial market
Trend of Interest rate and financial market Trend of long-term interest rate and Nikkei 225 3.5% Scale(1) Scale(2) (JPY) Yield on 10Y JGB Yield on 10Y US tresury Nikkei 225 ¥24,000 [Left scale (1)] [Left scale (2)] [Right scale] 0.8% 3.0% Jan. 2016 Nov. 2016 ¥22,000 Introduction of negative US presi
Slide 78: BOJ Current Account Balances
BOJ Current Account Balances Monthly average balance of BOJ current account (16 May. -15 Jun.) Total of institutions subject to the complementary City banks including deposit facility Resona Bank and Saitama Resona Bank JPY363.7 tn JPY137.7 tn The outstanding balance of current account at the Bank J
Slide 79: Aging of Japan's Population
Aging of Japan’s Population (Population Trends by Age / Actuals and Estimates)*1 Population Trends by Age Groups (mn individuals) 140 Actual Prospect 75 and above 120 65 to 74 under 65 100 80 60 40 20 0 *1. Source: National Institute of Population and Social Security Research 78
Slide 80: Sales of Investment Trusts and Insurance
Sales of Investment Trusts and Insurance Total Net Assets of Investment Trusts Ratio of Life Insurance Policy Holders by Distribution Channel*1 by Distribution Channel in Last 5 years*2 45.6% Securities Banks (JPY tn) (Ratio of bank) 90 Direct sale Share of Banks (right scale) 80 40% 70 60 30% 50 18
Slide 81: Housing Data
Housing Data New Housing Construction Starts*1 (10 thousands units) Houses for lent Own houses, condominiums, etc 129 104 104 54 99 97 92 95 89 88 82 84 43 44 78 37 32 38 43 41 29 29 36 31 75 60 59 55 57 62 53 52 54 55 54 46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *1. Source: Min
Slide 82: Our Website Information
Our Website Information http://www.resona-gr.co.jp/holdings/english/ Materials for investors are available from here Official You Tube (in Japanese language) http://www.youtube.com/user/ResonaGroup Official Facebook account Official Twitter account (in Japanese language) (in Japanese language ) ht
Slide 83: Proactively Communicating with Our Shareholders and Investors
Proactively Communicating with Our Shareholders and Investors Publication of Integrated Report 2017 of Resona Group http://www.resona-gr.co.jp/holdings/english/investors/financial/integrated/index.html Integrated Report explains in a simple manner to all stakeholders the Resona Group’s strengths and
Slide 84: Forward-looking statements
The forward-looking statements contained in this material may be subject to material change due to the following factors. These factors may include changes in the level of stock price in Japan, any development and change related to the government’s and central bank’s policies, laws, business practic