Resona Holdings, Inc. · TSE:8308
Resona — 1-3Q FY2017 Earnings Presentation
87 slides from Resona's earnings presentation, March 2018
Slide 1: Business Results for 1-3Q of FY2017 and Future Management Direction
Business Results for 1-3Q of FY2017 and Future Management Direction March 2018
Slide 2: Table of Contents
Table of Contents Efforts to Business Challenges Resona Group at a Glance for Sustainable Growth P3 Resona Group at a Glance P24 Value Creation Model for Becoming the "Retail No.1" Financial P4 Population and Economic Scale of Resona’s Primary Operating Base Service Group P5 Loan Portfolio, Interest
Slide 3: Resona Group at a Glance
Resona Group at a Glance Outline of Business Results for 1-3Q of 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. 13 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: Stable Earnings Trend and High Profitability
Stable Earnings Trend and High Profitability Resona has consistently generated stable profits supported by our sound balance sheet Historical Consolidated ROA*1 Resona HD Net Income Attributable Y275.1 bn Y220.6 bn Y211.4 bn Y183.8 bn Y161.4 bn to Owners of the Parent *1. Source: Company disclosur
Slide 8: Outline of Business Results for 1-3Q of FY2017 and Updates on Major Businesses
Resona Group at a Glance Outline of Business Results for 1-3Q of FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 7
Slide 9: Opening Remark: Major Progress in FY2017 to This Date
Opening Remark: Major Progress in FY2017 to This Date 1. 1-3Q of FY2017: Steadily implemented the income and cost structure reforms Average loan balance continued to increase steadily while the speed of loan-to-deposit spread contraction began to slow down Fee income has turned into an increasin
Slide 10: Outline of Financial Results for the 1-3Q Period of FY2017
Outline of Financial Results for the 1-3Q (9 Months) Period of FY2017 1-3Q of FY2017 FY2017 Posted JPY202.7 bn of net income attributable to owners of Resona HD consolodated YoY Target the parent (JPY bn) change % Released in Jan. '18 Net income attributable to owners UP JPY72.9 bn, or 56.1%, Yo
Slide 11: Breakdown of Financial Results
Breakdown of Financial Results Difference (Exclude the Resona Holdings Total of group banks effect of realignm ent of Effect of (Consolidated) (Non-consolidated) loan guarantee (JPY bn) Saitama Kinki realignment of Resona subsidiaries) Resona Osaka loan YoY YoY Bank YoY Bank Bank guarantee change ch
Slide 12: Factors for the Changes in Periodic Profits (YoY Comparison)
RHD Factors for the Changes in Periodic Profits (YoY Comparison) Consolidated (JPY bn) Actual net operating profit (12.1) Effect of management Gross operating profit (14.2) integration among 3 regional banks in Kansai region +71.5 Effect of realignment of loan Net interest income (4.1) guarantee s
Slide 13: 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, QoQ) 【 Average loan balance (JPY tn) 】 27.5 27.6 Avg. bal : Trillion Yen 1-3Q FY2017 28 % represents YoY change 27.3 27.4 (+1.8
Slide 14: 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 JPY tn, % represents YoY change YoY change Corporate (Large companies and other) *1 Corporate (SMEs) Other Corporate (Apartment loans) Corporate 41.48 40.72 40.97 41.31
Slide 15: Residential Housing Loan and Apartment Loan Business
Total of Residential Housing Loan and Apartment Loan Business Group 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%
Slide 16: Trend of Fee Income
RHD Trend of Fee Income Consolidated Consolidated fee income ratio at 29.4% for 1-3Q of FY2017 JPY bn, % represents YoY change Consolidated fee income ratio*1 29.6% 30.0% 160.0 28.5% 29.4% 30.0% 27.2% 27.7% Consolidated 27.2% fee income Consolidated 140.0 fee income 190.0 169.0 25.0% 120.0 (+5.2% )
Slide 17: Asset Formation Support Business
Total of Asset Formation Support Business Group Banks Balance of asset formation support products sold to individuals (JPY tn) Asset formation support product Balance of fund wrap (including 15.6% 15.4% ratio*1 corporation) : ’17/12 Approx. 200.0 bn 6 14.7% 14.3% 14.1% 13.9% Foreign currency 15% N
Slide 18: Major Fee Businesses
Total of Major Fee Businesses Group Banks Trust-related business (JPY bn) (Reference) Number of new asset succession-related contracts Income from trust solution offered for asset and business succession Trust for transfer of own company stocks Income from Pension/Securities trust Asset succession 1
Slide 19: Credit Costs and NPL
RHD Consolidated Credit Costs and NPL Total of Group Banks Trend of NPL balance and ratio Trend of credit costs (Total of Group Banks) FY2015 FY 2016 FY 2017 (Financial Reconstruction Act criteria)) (JPY bn) 1-3Q 1-3Q Act. Plan Unrecoverable or valueless claims (9Ms) (9Ms) Net credit cost Risk claim
Slide 20: Securities Portfolio
Total of Securities Portfolio Group Banks Securities Portfolio *1. Status of policy-oriented stocks held Breakeven Nikkei average: Approx. 5,600 yen (JPY bn) 2017/3 2017/9 2017/12 Unrealized Decrease in listed stocks in 1-3Q of FY2017 (acquisition gain/(loss) cost) : JPY 2.2 bn, Available-for-sa
Slide 21: Capital Adequacy Ratio
RHD Capital Adequacy Ratio Consolidated CAR (Domestic std.) and CET1 ratio* (International std.) as of Dec. 31, 2017 were 12.10% and 9.90%, respectively, maintaining sound capital adequacy level * Excluding unrealized gain on available-for-sale securities Domestic standard (Reference) Internationa
Slide 22: (Reference) Outline of Financial Results of Each Segment (1)
RHD (Reference) Outline of Financial Results of Each Segment (1) Consolidated Actual net operating profit of customer division increased, due to improvement of corporate banking segment FY2017 YoY Markets (JPY bn) (JPY bn) 1-3Q Change and Personal Corporate Other Gross operating profit (1) 360.1 (1.
Slide 23: (Reference) Outline of Financial Results of Each Segment (2)
RHD (Reference) Outline of Financial Results of Each Segment (2) Consolidated Personal Banking Segment Corporate Banking Segment Actual net operating profit : decreased by JPY2.1 bn Actual net operating profit : increased by JPY3.0 bn YoY YoY Decreased mainly due to decline in profit from Co
Slide 24: Efforts to Business Challenges for Sustainable Growth
Resona Group at a Glance Outline of Business Results for 1-3Q of FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 23
Slide 25: Value Creation Model for Becoming the Retail No.1 Financial Services Group
Value Creation Model for Becoming the “Retail No.1” Financial Services Group Resona Group contributes to regional economies and achieves sustainable growth together with its customers Social changes ACTIVITIES OUTCOMES and issues Ongoing aging of society INPUTS Overwhelming Population Strengths of c
Slide 26: Omni-Channel Strategy
Omni-Channel Strategy Expansion of the Sophistication of Customer Contacts Marketing Expand transactions “One on One” with 13.0 mil. or more Anytime, Anywhere Proposal customers Digital Conversion of remote channels Convenience of Smart into sales bases Accounts for all customers (Non- Joint devel
Slide 27: Omni-Advisors Strategy
Omni-Advisors Strategy Expand Base of Long-Term Stable Customers through Consultants who can understand true latent needs of customers Develop a corporate culture of highly customer-oriented awareness for all corporate and individual customers to provide “Independent Financial Advisor”-type serv
Slide 28: Establishment of Omni-Regional Platform
Establishment of Omni-Regional Platform Create new profit opportunities through providing new value to more customers Tie-ups with regional banks with different commitment levels Mutually “Win-Win” relationships High Level of capital alliance Low Benefits for customers (Broadly) Resona Group Shared
Slide 29: Creation of Kansai Mirai Financial Group (1)
Creation of Kansai Mirai Financial Group (1) As a financial group which will advance together with the future of the Kansai region, Management Grow with its customers, principles Create a prosperous future for communities it serves, Make innovative changes for continuous evolution Overview (April 20
Slide 30: Creation of Kansai Mirai Financial Group (2)
Creation of Kansai Mirai Financial Group (2) Establish largest operating base in Kansai and strengthen foundation of Japan’s largest retail financial group 1st section General SMFG shareholders of TSE Around Around 51% 22.3～26.3% Kansai Mirai Financial Group, Inc.1stofsection TSE 100% 100% 100% 100%
Slide 31: Asset Formation Support Business
Asset Formation Support Business Increase asset formation support products balance based on fiduciary duty [Balance of Asset Formation Support Products for Detailed consulting tailored customers Individuals] +40% [Fund Wrap] Fund Wrap Customer Attributes (JPY tn) 6.0 Began handling Feb. 2017 ->
Slide 32: Settlement Business
Settlement Business Acquire broad-based and stable revenues by providing progressive, highly convenient settlement services Strengthen Debit Card Strategy [Introduce new product] （Oct. 2017~） Increase Increase Giving all customers convenience and a account set rate convenience great deal For all c
Slide 33: Utilization of FinTech
Utilization of FinTech Utilize advanced technologies to pursue greater customer convenience and higher productivity Deposits Loans Settlement Asset formation R&D and Low-cost real-time Business New services Personal finance app Transaction lending remittance Robo-advisors Use of new Utilization tech
Slide 34: Succession Business
Succession Business Expanding transactions with succession solutions that utilize strength in trusts [Succession-related income] +4.0 bn Expanding succession market (JPY bn) Population estimates by Business succession age*1 preparations *2 14.0 Real estate brokerage fee from consumers With mou
Slide 35: SME Business
SME Business Deepening transactions with 400,000 total corporate customers through growth stage-based solutions [Solutions/international business income] (JPY bn) +10.0 bn Conversion Strengthen information linkage with regional International businesses 35.0 financial institutions nationwide throug
Slide 36: International Business
International Business Comprehensive support for customers’ overseas business development, centering on Asia and U.S. Services offered by corporation among domestic branches, JV bank, representative offices and partner banks [Resona Merchant Bank Asia] (Singapore) United South States Korea Provi
Slide 37: Individual Loan Business
Individual Loan Business Achieve multifaceted transactions with more customers starting with financing for living [Balance of Residential Housing Loans] Expand share of loans to individuals and ＋8.8％ increase profitability (JPY tn) Open, 11.1 screening and execution on Nation-wide service through Sm
Slide 38: Process Reform: Full-Scale Digitalization
Process Reform: Full-Scale Digitalization Strengthen marketing capabilities and raise cost competitiveness through digitalization Situate optimally sized branches in optimal locations Policy development with emphasis on speed Improve customer Improve Resona’s All branches to have instant card issu
Slide 39: 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 40: Direction of Capital Management
Resona Group at a Glance Outline of Business Results for 1-3Q of FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 39
Slide 41: 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 Impact of KMFG establishment on capital adequacy ratio is recoverable soon and no change to the equal weight allocatio
Slide 42: Reference Material
Resona Group at a Glance Outline of Business Results for 1-3Q of FY2017 and Updates on Major Businesses Efforts to Business Challenges for Sustainable Growth Direction of Capital Management Reference Material 41
Slide 43: Overview of the Mid-term Management Plan Retail No.1
Overview of the Mid-term Management Plan “Financial Services Group” that is most supported by Vision “Retail No.1” regional customers as it walks with them into the future Deliver solutions customers really need and reform mid-to-long term income structure by establishing “Next- generation Retail Fi
Slide 44: Mid-term Management Plan: Income and Cost Structure Reforms
Mid-term Management Plan : Income and Cost Structure Reforms Higher profitability via perfection Develop tolerance to prolonged ultra-low interest rate of new business model and environment via income and cost structure reforms better operating environment (JPY bn) Income structure reforms Cost stru
Slide 45: Mid-term Management Plan: Business Strategies
Mid-term Management Plan : Business Strategies Solutions for business growth, Total life solutions turnaround and succession Solutions for individual customers’ anxieties and concerns, Supports to SME customers to solve business challenges and for higher conveniences Cultivating “Retail x Trust x AM
Slide 46: KMFG's Schedule for Integration
KMFG’s Schedule for Integration Schedule Contents September 26, 2017 Board resolution by Resona Holdings, SMBC, Minato, Kansai Urban and Kinki Osaka and determination of the executive officer of SMFG, regarding the execution of the Business Integration Agreement Execution of the Business Integration
Slide 47: KMFG's Management Integration Process (1)
KMFG’s Management Integration Process (1) Via phase 1 through 3, Kansai Mirai Financial Group (KMFG) will start fully-fledged operation in April 2018. Phase 1 (November - December 2017) RHD RB 100% 100% (a) Loan (a) RHD established an intermediate holding company, KMFG, as its wholly-owned subsidi
Slide 48: KMFG's Management Integration Process (2)
KMFG’s Management Integration Process (2) Phase 2 (December 2017 - February 2018) (c) RHD will implement the tender offer up to 6,182,500 (d) (e) RHD shares of common stock of MB (corresponding to 15% of (c) the number of the voting rights of all of the shareholders of MB) (d) RHD will implement the
Slide 49: KMFG's Management Integration Process (3)
KMFG’s Management Integration Process (3) Phase 3 (Planned in April 2018) Final Structure General General General Shareholders SMFG Shareholders RHD Shareholders RHD SMFG Around Around (f) 51% 22.3% ~ 26.3% * MB KU KMFG KMFG 100% 100% 100% KO MB KU KO (f) Implement the share exchange with KMFG as a
Slide 50: KMFG's Strengths (1): Market Potential
KMFG’s Strengths (1) : Market Potential Total population of Osaka, Hyogo and Shiga prefectures exceeds that of Tokyo Metropolitan Area Total GDP of Osaka, Hyogo and Shiga Prefectures amounts to 12% of entire Japan and 79% of the entire Kansai region Loan Number of business Export and Population*
Slide 51: KMFG's Strengths (2): Top-class in Japan and Largest Regional Group in Kansai
KMFG’s Strengths (2) :Top-class in Japan and the largest regional financial group in the Kansai region Retail Focused Banking Model Gross Branch Total Deposits*1,3 operating Loans*1,3 offices*1 assets*1,3 profit*1,2 JPY 148.2 bn JPY 11.6 tn JPY 8.8 tn 10.4 ％ 379 4th 6th 5th 6th 1st Ratio of loans
Slide 52: 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 Resona adopted by two 2017 30th Nikkei New Nadeshiko Brand ESG stock indices Office Awards FY2014, FY2015 and FY2016 selected by GPIF 7 Days Plaza Hirakata re
Slide 53: Initiatives for Corporate Governance Evolution
Initiatives for Corporate Governance Evolution Self-evaluation of the board Performance share unit plan 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 consolidated ROE
Slide 54: CSR
CSR To raise corporate value through contributing to the creation of a sustainable society, we have identified and are engaged in four priority areas – Community, Next Generation, Diversity and Environment Community “Re: Heart Club” (Employee volunteer group) joined various community activities [“
Slide 55: 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 20th Resona Brand Awards Presented in Sep. 2017 (Selected by vote of all employees from among monthly awards in second half of F
Slide 56: Business Results by Major Group Business Segments (1H FY2017)
Business Results by Major Group Business Segments (1H FY2017) “RVA”*1 and “RAROC” as management indicators to measure profitability to allocated capital (JPY bn, %) Profitability Soundness Net operating profit after a deduction of credit cost Net profit after a Risk-adjusted Cost to Resona Group d
Slide 57: PL Summary and Factors for Consolidated and Total of Group Banks Difference
PL Summary and Factors for “Consolidated” and “Total of Group Banks” Difference (1H FY2017) PL Summary RHD consolidated / (RHD consolidated / Total of group banks) Total of group banks difference (Major consolidated subsidiaries) Total of group RHD Difference HL guarantee Resona Resona P. T. Bank ba
Slide 58: Consolidated Subsidiaries and Affiliated Companies (1H FY2017)
Consolidated Subsidiaries and Affiliated Companies (1H FY2017) Consolidated domestic subsidiaries (excluding group banks) (JPY bn） Net income Name Line of business Capital contribution ratio YoY 1H FY2017 change Credit guarantee Japan's highest class of residential housing Resona Holdings *1 Resona
Slide 59: 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 the
Slide 60: Sound Balance Sheet
Sound Balance Sheet Sound assets backed by very stable deposit funding Resona’s consolidated balance sheet (as of September 30, 2017) Total assets JPY48.7 tn Sound loan portfolio Fixed-rate Stable funding structure Loans loans*1 Deposits Consists mostly of and Strong deposit base JPY JPY6.6 tn
Slide 61: Maturity Ladder of Loan and Deposit (Domestic Operation)
Total of Maturity Ladder of Loan and Deposit (Domestic Operation) Group 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 62: Composition of Loan Portfolio and Deposits (September 30, 2017)
Composition of Loan Portfolio and Deposits Total of (September 30, 2017) Group Banks Loans*1 Deposits*4 Fixed Rate Liquid 5% Fixed Rate 19% deposits Personal 26% Banking Corporate Corporation Bussiness Banking Liquid (JPY13.0 tn) Prime Unit Bussiness deposits 34% Rate (JPY10.5 tn) Unit*2 46% 33% 38%
Slide 63: Composition of Loan Portfolio by Base Rates
Total of Composition of Loan Portfolio by Base Rates Group Banks Corporate Banking Business Unit*1,2 Prime Prime Prime Fixed Fixed Rate Fixed Rate Rate Rate Rate Rate 26% 28% 27% 29% 30% 31% [September 30, [March 31, [September 30, 2016] 2017] 2017] Market Rate*3 Market Rate*3 Market Rate*3 42% 43%
Slide 64: Composition of Deposits by Types
Total of Composition of Deposits by Types Group Banks Corporate Deposits Time Time Time deposits deposits deposits 21% 20% 22% [September 30, [March 31, [September 30, 2016] 2017] 2017] Liquid deposits Liquid deposits Liquid deposits 74% 75% 77% Individual Deposits Time Time Time deposits deposits d
Slide 65: 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 66: Stocks Held by Industry (September 2017)
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 67: 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) Sep. 30, 2017 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 68: Capital Adequacy Ratio (Group Banks)
Capital Adequacy Ratio (Group Banks) Resona Bank Saitama Resona Bank Kinki Osaka Bank (Consolidated) (Non-consolidated) (Consolidated) [A-IRB] [A-IRB] [F-IRB] Japanese Domestic Standard (JPY bn) Mar. 31, Sep. 30, Mar. 31, Sep. 30, Mar. 31, Sep. 30, 2017 2017 2017 2017 2017 2017 Change Change Change
Slide 69: List of Preferred Shares and Subordinated Bonds
List of Preferred Shares and Subordinated Bonds (Feb. 28, 2018) Preferred Shares Class 5 Preferred Shares Original issue date (1) 8/28/2007 Current number of shares (2) 4,000,000 shares Issue price per share (3) JPY 25,000 Total issue amount remaining at present (4) JPY 100.0 Billion Original total
Slide 70: Responses to Ongoing International Discussion over Tightening of Financial Regulation
Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation Major items of financial regulation being discussed internationally Many domestic regulations will be formulated hereafter based on finalized Basel 3 rules. Major regulatory items Outline Important up
Slide 71: 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 72: 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 2017 JCR A1 A+ R&I JCR S&P A2 A Moody's A3 A- Baa1 BBB+ Baa2 BBB Baa3 BBB- Ba1 BB+ 71
Slide 73: Composition of Resona HD's Common Shareholders
Composition of Resona HD’s Common Shareholders 2.26% 8.96% 5.03% 3.96% 3.93% 5.48% Other 6.08% 6.09% 5.80% 5.97% Corporations 20.01% 20.01% 20.01% 6.35% 13.51% 15.68% 15.48% 14.34% Individuals, etc. 41.95% DIC 5.83% 4.34% 4.58% 16.51% 50.11% 7.39% 6.84% 6.50% 22.23% 19.72% 21.56% 27.92% 31.29% 34.17
Slide 74: 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 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 Net interest income 599.1 561.2 542.3 549.8 56
Slide 75: Reference Material: Macro Economic Trend
Reference Material Macro Economic Trend 74
Slide 76: Actual and Forecast of Real GDP Growth Rate
Actual and Forecast of Real GDP Growth Rate GDP Components*1 *2 *2 (JPY tn) Private Consumpton Private Investment Public Demand Net Exports 550 132.0 450 350 101.6 250 150 300.3 50 -1.0 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 77: Overall Economy in Japan (1)
10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 2002 Jul. - Sep. 2003 Jul. - Sep. 2004 Jul. - Sep. 2005 Jul. - Sep. 2006 Jul. - Sep. 2007 Jul. - Sep. 2008 Jul. - Sep. 2009 Jul. - Sep. 2010 Jul. - Sep. 2011 Jul. - Sep. 2012 Jul. - Sep. at 10M-100M(Y)》 2013 Jul. - Sep. 2014 Jul. - Sep. 《Companies capitalized 2
Slide 78: Overall Economy in Japan (2)
Overall Economy in Japan (2) Enterprise Bankruptcy*1 (Number of cases) * Excluding debts related to Lehman Brothers which failed in Sep. 2008 (Approx. Y4,700 bn) Unemployment Rate*2 (%) * Excluding three prefectures of Japan (Iwate, Miyagi and Fukushima) from the result of March,2011 to June, 2011 *
Slide 79: Employment
Employment Active job openings-to-applicants ratio*1 Wage / Salary*2 (times) (JPY thousand) 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *1. Source: Ministry of Health, Labour and Welfare / Employment Referrals for General Workers (Seasonally adj
Slide 80: Exchange Rate / Corporate Earnings
Exchange Rate / Corporate Earnings Exchange Rate(USD / JPY)*1 Ordinary Profit for Japanese Corporations*2 (JPY) (JPY tn) *1. Source: Resona Bank *2. Source: Ministry of Finance / Financial Statements Statistics of Corporations by Industry 79
Slide 81: BOJ Current Account Balances
BOJ Current Account Balances Monthly average balance of BOJ current account (16 Dec. -15 Jan.) Total of institutions subject to the complementary City banks including deposit facility Resona Bank and Saitama Resona Bank JPY349.1 tn JPY133.7 tn The outstanding balance of current account at the Bank J
Slide 82: 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 81
Slide 83: 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% (Ratio of bank) 18.5% 16.8% 9.0% 8.7% 8.0% 5.6% Sales Mail order Bank Post Office Insurance Workplace Other
Slide 84: 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 89 92 88 82 84 43 44 78 37 32 38 43 29 29 36 31 75 60 59 55 57 62 53 52 54 55 46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *1. Source: Ministry of Land,
Slide 85: 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 86: Proactively Communicating with Our Shareholders and Investors
Proactively Communicating with Our Shareholders and Investors Publication of Integrated Report 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 meas
Slide 87: Forward-looking statements
The forward-looking statements contained in this presentation 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 pra