Resona Holdings, Inc. · TSE:8308
Resona — H1 FY2014 Earnings Presentation
77 slides from Resona's earnings presentation, January 2015
Slide 1: Business Results for 1st Half of FY2014 and Future Management Direction
Business Results for 1st Half of FY2014 and Future Management Direction January 2015
Slide 2: Contents
Contents Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material Total loans outstanding (Term-end balance): JPY26.8 tn*1 1. In
Slide 3: Table of Contents
Table of Contents Resona Group at a Glance Progress in Public Funds Full Repayment Plan P4 Resona Group at a Glance P36 Repayment Efforts Entering the “Final Stage” to Complete Full Repayment P5 Population and Economic Scale of Resona’s Primary Operating Base P37 Progress of “Public Funds Full Repay
Slide 4: Resona Group at a Glance
Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material 3
Slide 5: 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 6: 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 7: 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 peers Through operational reforms and efficient management, Resona mitigated the high-cost structure inherent in retail ban
Slide 8: Sound Balance Sheet
Sound Balance Sheet Sound assets backed by very stable deposit funding Resona’s consolidated balance sheet (as of September 30, 2014) Total assets Y45.1 tn Sound loan portfolio Loans and bills Stable funding structure discounted Well-diversified loan book with JPY 26.7 tn Strong deposit base m
Slide 9: Stable Earnings Trend and High Profitability
Stable Earnings Trend and High Profitability Resona has consistently generated stable profits supported by our sound balance sheet Resona’s 5-year average RORA and ROA are higher than the average for the 3 megabank groups and 10 largest regional bank groups Historical Consolidated ROA*1 RORA (5-
Slide 10: Outline of Business Results for 1st Half of FY2014
Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material 9
Slide 11: Financial Highlights for 1H of FY2014
Financial Highlights for 1H of FY2014 1. Posted Y132.7 bn of consolidated net interim 4. Public funds: Fully repaid the public funds income received under the Deposit Insurance Law Increased by Y10.6 bn, or 8.7%, YoY In June 2014: Paid Y32.0 bn as special preferred dividends for a repayment of R
Slide 12: Outline of Results for 1H of FY2014 (RHD Consolidated)
Outline of Results for 1H of FY2014 (RHD Consolidated) Posted Y132.7bn as net interim income, + Y10.6bn YoY, and + Y58.7bn against the forecast Credit-related Income tax Other, expenses, and other net (Billions of Yen) net Consolidated gross Operating Net gains +0.8 +0.3 operating profit +9.9 expens
Slide 13: Outline of Financial Results for 1H of FY2014
Outline of Financial Results for 1H of FY2014 Resona Holdings Total of 3 group banks Factors accounting for the difference (A)-(B) (Approx. (Billions of Yen) (Consolidated) figures) Difference (Non-consolidated) Resona Saitama Kinki RC: Resona Card, （A） YoY change （A）－（B） （B） YoY change Resona Osaka
Slide 14: Gross Operating Profit for 1H of FY2014 Compared with 1H of FY2013
Gross Operating Profit for 1H of FY2014 Compared with 1H of FY2013 (Total of Group Banks) Top-line income has steadily progressed towards a goal of turning it around Net interest income from loans Net gains (Billions of Yen) and deposits*1 Other interest on bonds Other (net) Investment (8.4) income
Slide 15: Outline of Results by Business Segments (1)
Outline of Results by Business Segments (1) Actual net operating profit of “Customer Divisions” decreased by Y3.8bn YoY Actual net operating profit of “Markets and Other” remained almost flat YoY despite a swing decrease in ETF trading gains (Y bn) (Billions of Yen) 1H FY2013 1H FY2014 Change +0
Slide 16: Outline of Results by Business Segments (2)
Outline of Results by Business Segments (2) Personal Banking Segment Corporate Banking Segment Actual net operating profit increased by Y0.8bn Actual net operating profit decreased by Y4.6bn Investment products sale and real estate brokerage Net interest income from loan and deposit decrease
Slide 17: Trend of Loan and Deposit
Trend of Loan and Deposit (Total of Group Banks) Loan and deposit rates and spread Average loan balance and spread (Domestic Acct.) Loan yield (left scale) FY2014 (Trillion Yen) 1H FY2014 Loan-to-deposit spread (left scale) Y oY Y oY 2.5% 1.2% (Act) (Plan) Deposit cost (right scale) change change 1
Slide 18: Trend of Fee Businesses
Trend of Fee Businesses (Total of Group Banks) Fees and commission income plus trust fees earned in 1H FY2014 : Y63.2bn 63.2 (1) Investment Products (2) Pension and Securities Trusts （Ybn） Securities trust Pension trust 12.0 11.8 Investment 10.7 11.1 10.5 (Ybn) 10.3 Trust 10 2.5 2.5 17.2 2.2 2.4 2.
Slide 19: Credit Costs and NPL
Credit Costs and NPL Trend of credit costs Comparison: Gross and net NPL ratio (Note) Positive figures represent reversal gains FY 2013 FY 2014 (Y bn) FY2012 1Q 1Q Plan Net credit cost (Total of group banks (A)) (1) 21.4 14.8 27.1 23.1 10.0 General reserve (2) 29.4 12.2 28.4 17.6 Specific reserve an
Slide 20: Securities Portfolio
Securities Portfolio Seeking to obtain additional income via flexible portfolio rebalancing in accordance with the prevailing market conditions Trend of Securities Portfolio (HD consolidated) Stocks Mar.2003 Mar.2007 Mar..2014 Sep..2014 (Ybn) Unrealized Breakeven Nikkei average: Approx. 5,900
Slide 21: Capital Adequacy Ratio (Consolidated, Domestic Standard)
Capital Adequacy Ratio (Consolidated, Domestic Standard) Capital adequacy ratio Factors for the change in 1H of FY2014 Adopted the Basel 3 from Mar. 31, 2014 Comparison of total capital as of Sep.30 and Mar. 31, 2014 （Ybn） For the methodology to calculate the credit risk Net weighted assets, R
Slide 22: Capital Adequacy Ratio (Consolidated, International Standard)
Capital Adequacy Ratio (Consolidated, International Standard) Capital adequacy ratio Factors for the change in 1H of FY2014 Banks adopting the IRB approach to calculate Comparison of CET1 ratio as of Sep.30 and Mar. 31, 2014 credit risk weighted assets are required to satisfy: Net （Ybn） Full Rep
Slide 23: Earnings Forecasts for FY2014 (Released on November 2014)
Earnings Forecasts for FY2014 (Released on November 2014) (Billions of Yen) Resona Holdings (Consolidated) Resona Holdings (Non-consolidated) Change Change from 1H FY'14 Full year Change f rom 1H FY'14 Full year Change from from original prev ious y ear original (Actual) forecasts (Actual) forecasts
Slide 24: Comparison of New and Original Consolidated Net Income Forecasts for FY2014
Comparison of New and Original Consolidated Net Income Forecasts for FY2014 Forecasting Y190 bn of consolidated net income for FY’14 (Y40.0 bn upward revision to the Original ) (Billions of yen) +35.5 (12.0) +3.0 Gross operating Operating New profit expense Forecast +13.5 Due to increase in income
Slide 25: Efforts to Build Solid Foundation for Sustainable Growth
Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material 24
Slide 26: Efforts to Increase Loans and Improve Profitability: Business Loans (1)
Efforts to Increase Loans and Improve Profitability: Business Loans (1) Loans to Premier customers will likely grow strongly against the backdrop of rising needs for asset and business succession solutions Mostly long-term and high quality loans Resona Group’s advantages Relatively high loan yield
Slide 27: Efforts to Increase Loans and Improve Profitability: Business Loans (2)
Efforts to Increase Loans and Improve Profitability: Business Loans (2) Discernible sign of possible pickup in demand for loans from corporate sector Two in three corporate customers of Resona Bank [Corporate loan (excluding loans to premier customer] having intentions to increase Capex*1 [Does yo
Slide 28: Efforts to Increase Loans and Improve Profitability: Loans to Individuals (1)
Efforts to Increase Loans and Improve Profitability: Loans to Individuals (1) Aggressive strategy to expand the volume of housing loan [Owner-occupied residential housing loan (Term-end balance)] Strategic pricing to pursue volume Risk pricing based on its own credit analysis model Web application-o
Slide 29: Efforts to Increase Loans and Improve Profitability: Loans to Individuals (2)
Efforts to Increase Loans and Improve Profitability: Loans to Individuals (2) Strengthen efforts to maintain and improve the profitability of loans originated Introduced high value-added, only one product Continue stringent credit administration Danshin-Kakumei (HL with wider coverage group life
Slide 30: Trend of Residential Housing Loans
Trend of Residential Housing Loans (Total of Group Banks) Composition of newly originated residential New loan origination housing loans by interest rate type （Y tn） Approx. 90% of the newly originated loans are variable rate type Flat 35 Residential housing loan 0.76 0.67 0.07 0.60 0.54 0.55 0.04
Slide 31: Achievements in Cross-selling Efforts Measured with KPIs
Achievements in Cross-selling Efforts Measured with KPIs (YTD) Primary Index RLCs = Clients to whom the group have achieved cross-selling to some extent (Number of customers in thousands) Sep. 30, 2013 Sep. 30, 2014 Change AUM or condominium loan (1) Premier 51 54 ＋2.1 exceeding JPY50 mill
Slide 32: Efforts to Strengthen Cross-selling: Trust Capability and Existing Customer Base
Efforts to Strengthen Cross-selling: Making Best Use of Trust Capability and Existing Customer Base Succession-related solutions as gateway to promoting cross-selling Promising combination of Resona’s trust capability [Share of new entrustments among trust banks] and broad customer base Mar. 2008
Slide 33: Efforts to Strengthen Cross-selling: Omni-Channel Strategy
Efforts to Strengthen Cross-selling: Omni-Channel Strategy Deliver products and services of real value “at any time” and “on any channels” customers choose At any time On any channels Branch open until 5:00 pm on business days 1 to 1 web-based communication service Induce "internet-only" users t
Slide 34: Backbone Sustaining Resona's Cross-selling Business Model
Backbone Sustaining Resona’s Cross-selling Business Model Fully exploit the well-developed advantages in business infrastructure and human resources Advantages in infrastructure Advantages in HR Next-generation Branch Office Resona Bank Tops Nikkei’s Retail Banking Survey RB and SR completed a s
Slide 35: Further Streamlining Operation While Enhancing Competitiveness
Further Streamlining Operation While Enhancing Competitiveness Trend of adjusted net personnel and Measures to enhance competitiveness non-personnel expenses and curtail costs Adjusted net personnel expense will remain flat, absorbing an increase in social insurance premium through personnel expen
Slide 36: Progress in Public Funds Full Repayment Plan
Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material 35
Slide 37: Repayment Efforts Entering the "Final Stage" to Complete Full Repayment
Repayment Efforts Entering the “Final Stage” to Complete Full Repayment Fully repaid DIC Preferred stock, the balance of public funds has been reduced to Y128.0bn Chronological repayment of public funds (based on injected amount) (JPY bn) 3,128.0 Amount repaid (Based on injected amount) JPY3,000.0
Slide 38: Progress of "Public Funds Full Repayment Plan"
Progress of “Public Funds Full Repayment Plan” (Billions of yen) “Final Stage” to Complete Full Repayment Mar. 2013 1st Year 2nd Year 3rd Year 4th Year 5th Year Total 871.6 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Completed Repayment 32.0*1 Full RCC Repayment 32.0*1 Repayment Repayment 32.0
Slide 39: Direction of Resona's Capital Management
Direction of Resona’s Capital Management Capital Adequacy Ratio Management Remain subject to the Japanese Domestic Standard However, in order to secure reliable capital strength, Resona Group operates its business with a high CAR, taking reference to the International Standard. Adoption of the
Slide 40: Reference Material
Resona Group at a Glance Outline of Business Results for 1st Half of FY2014 and Updates on Major Businesses Efforts to Build Solid Foundation for Sustainable Growth Progress in Public Funds Full Repayment Plan Reference Material 39
Slide 41: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments “RAROC” and “RVA”*1 as management indicators to measure profitability to allocated capital Management Accounting by Major Group Business Lines (1H FY2014) (Billions of Yen, %) Profitability Soundness Net operating profit after a deduction of credit
Slide 42: Consolidated Subsidiaries and Affiliated Companies
Consolidated Subsidiaries and Affiliated Companies Consolidated domestic subsidiaries (excluding subsidiary banks) (Billions of Yen) Net income （Ref ） Capital contribution Name Line of business FY2014 FY2013 ratio YoY change 1H Net Income Credit guarantee Resona Guarantee Co., Ltd. (1) Resona Ｇroup
Slide 43: Capital Adequacy Ratio (Subsidiary Banks)
Capital Adequacy Ratio (Subsidiary Banks) Resona Bank Saitama Resona Bank Kinki Osaka Bank (Consolidated) (Non-consolidated) (Consolidated) Japanese Domestic Standard [Basel 3 A-IRB] [Basel 3 A-IRB] [Basel 3 F-IRB] (Billions of Yen) Mar. 31, Sep. 30, Mar. 31, Sep. 30, Mar. 31, Sep. 30, 2014 2014 201
Slide 44: Efficient Cost Structure: Personnel and Non-Personnel Expense
Efficient Cost Structure: Personnel and Non-Personnel Expense (Total of Group Banks) Unavoidable increase in operating expenses including social insurance premium will be offset by continued efforts to reduce non-personnel expenses Strictly controlled personnel expenses including the cost associ
Slide 45: Operational Reforms Aimed at Simultaneously Enhancing Revenue and Reducing Costs
Operational Reforms Aimed at Simultaneously Enhancing Revenue and Reducing Costs Profitability Maximization of Branch Offices Productivity Reinforcement Sales Force Reinforcement Significant reduction of administrative Freeing resources through work operational reforms and shifting Expansion o
Slide 46: Trend of Investment Product Sale Business
Trend of Investment Product Sale Business (Total of Group Banks) Investment Trust*1 Insurance*1 （Y bn） （Y bn） 113.2 400 392.3 369.3 96.1 100 89.7 83.3 82.6 297.3 78.9 283.2 73.7 300 275.0 249.6 68.8 71.2 70.672.0 233.9 245.6 243.5 61.2 58.8 201.0 188.4 200 189.1 50 44.5 146.4 118.5 100 0 0 1Q 2Q 3Q
Slide 47: Cross-selling Culture
Cross-selling Culture 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 Increase life-time profits by upgrading Products Per customer segments and by increasing the depth
Slide 48: Examples: How We Try to Originate Loans to Premier Customers
Examples: How We Try to Originate Loans to Premier Customers Solutions for SME owners to prepare cash Solutions for Effective Utilization of Real Estate for estate division in the future Establish a property management company and sell it Reconstruction needs stemming from aging the shares of hi
Slide 49: Supports for SMEs Doing Business in Asia
Supports for SMEs Doing Business in Asia Footholds in Asia to Extend Supports to SMEs Local Services Offered through Alliances Overseas Entered a business alliance with Myanma Apex Bank in representative offices Nov. 2014 4 offices Alliance network comprising 13 partner banks covering Shanghai
Slide 50: Sophistication in ALM Interest Rate Risk Management
Sophistication in ALM Interest Rate Risk Management: (Introduction of Internal Model to Measure Core Liquidity Deposits) Reassess the value of liquidity deposits Methods to measure core liquidity deposits Internal model to measure core liquidity deposits Before implementation of internal model ⇒ Gra
Slide 51: Securities Portfolio (Total of Group Banks)
Securities Portfolio (Total of Group Banks) Maturity ladder of securities held (securities with contractual maturities, nominal amount basis) (Y bn) End of Sep. 2014 End of Mar. 2014 Five to Five to One year One to Three to Seven to Over One year One to Three to Seven to Over seven Total seven Total
Slide 52: Stocks Held by Industry
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 53: Maturity Ladder of Loan and Deposit
Maturity Ladder of Loan and Deposit (Total of Group Banks, Domestic Operation) Loans and Bills Discounted Deposits [End of March 2014] [End of March 2014] 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) 2.0% 1.4% 4.3% 7.6% 15.3% Liquid deposits (1) 40
Slide 54: Swap Positions by Remaining Periods
Swap Positions by Remaining Periods (RHD Consolidated) Notional amounts of interest rate swaps (deferred hedge accounting applicable) by remaining period (Billions of Yen) Sep. 30, 2014 Mar. 31, 2014 Within 1 to 5 Over Within 1 to 5 Over Total Total 1 year years 5 years 1 year years 5 years Receiv
Slide 55: Composition of Loan Portfolio by Base Rates
Composition of Loan Portfolio by Base Rates (Total of Group Banks) Loans to corporations*1 Fixed Fixed Fixed Prime Prime Prime Rate Rate Rate, Rate, Rate, Rate, 24% 23% 23% 29% 28% 28% [September 30, [March 31, [September 30, 2013] 2014] 2014] Market Rate*2 Market Rate*2 Market Rate*2, 47% 48% 49% L
Slide 56: Composition of Deposits by Types
Composition of Deposits by Types (Total of Group Banks) Corporate Deposits Time Time Time deposits deposits deposits 25% 25% 23% [September 30, [March 31, [September 30, 2013] 2014] 2014] Liquid deposits Liquid deposits Liquid deposits 70% 71% 72% Individual Deposits Time Time deposits deposits 36%
Slide 57: Migrations of Borrowers
Migrations of Borrowers (RB, 1H of FY2014) Exposure amount basis *1 End of September 2014 Upward Downward Other Special Effectively Migration Migration Normal Doubtful Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Repayments Sale Normal 98.7% 0.7% 0.0% 0.0% 0.0% 0.0% 0.5% 0.5% 0
Slide 58: Trend of Long-term Senior Debt Rating of Resona Bank
Trend of Long-term Senior Debt Rating of Resona Bank S&P 2003 2004 2005 2006 2007 2011 2014 Moody's R&I 2/28 9/22 1/20 1/20 12/17 6/8 4/10 3/30 9/18 8/24 JCR 5/19 2/3 1/24 6/9 5/5 2/18 9/9 1/31 9/29 A1 A+ 2/4 R&I JCR S&P A2 A Moody's A3 A- Baa1 BBB+ Baa2 BBB Baa3 BBB- Ba1 BB+ 57
Slide 59: Corporate Governance
Corporate Governance The First Japanese Bank Employing a Committees-based Governance Modell Majority of Board Members Consist of Outside Directors The first Japanese bank with a committees- Companies with committees governance based governance model model in Japan Separation of management over
Slide 60: List of Preferred Share Issued by RHD
List of Preferred Share Issued by RHD [As of October 31, 2014] Public Funds Private Funds Class C Class F Class 4 Class 5 Class 6 Preferred Shares Preferred Shares Preferred Shares Preferred Shares Preferred Shares Distinction between public and private funds (1) Public Fund Public Fund Private Fund
Slide 61: Change in Composition of Resona HD's Total Equity
Change in Composition of Resona HD’s Total Equity (From Mar. 31, 2010 to Sep. 30, 2014) BPS (ND) is rapidly expanding => BPS(ND) 612 yen Resona Capital Public Funds Full （Y bn） Restructuring Plan Repayment Plan 3,000 Net Income In June 2014 160.0 Special Dividend for RCC preferred shares, Y32.0 bn
Slide 62: Outline of the New Domestic Capital Regulation
Outline of the New Domestic Capital Regulation Subordinated debts, preferred securities and non-convertible preferred shares Existing subordinated debts and preferred securities can be fully included in Core Capital as of the end of March 2014. These grandfathering items will be subject to a 10-
Slide 63: Long Term Business Results
Long Term Business Results (Ybn) FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 1H FY2014 Gross operating profit 901.8 775.0 763.1 768.6 805.2 769.3 739.5 678.3 667.0 655.2 637.1 608.5 310.4 Net interest income 599.1 561.2 542.3 549.8 563.7 555.3 547.0 499.4 484.
Slide 64: Reference Material: Macro Economic Trend
Reference Material Macro Economic Trend 63
Slide 65: Actual and Forecast of Real GDP Growth Rate
Actual and Forecast of Real GDP Growth Rate GDP Components*1 *2 *2 (Y tn) Private Consumpton Private Investment Public Demand Net Exports 10.6 500 125.3 400 82.2 300 200 307.0 100 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 2008 2009 2010 2011 2012 2013 2014 [R
Slide 66: Overall Economy in Japan (1)
Overall Economy in Japan (1) Trends in Stability Ratios of Japanese Companies*1 《Companies capitalized 《Companies capitalized 《Companies capitalized at 10M-100M(Y)》 at 100M-1,000M(Y)》 over 1,000M(Y)》 80% 160% 80% 160% 80% 160% 60% 120% 60% 120% 60% 120% 40% 80% 40% 80% 40% 80% 20% 40% 20% 40% 20% 40
Slide 67: Overall Economy in Japan (2)
Overall Economy in Japan (2) Capital investment / Cash flow *1. Source: Ministry of finance, Cabinet Office, Resona Bank 66
Slide 68: Overall Economy in Japan (3)
Overall Economy in Japan (3) Comparison of Debts Held by Private Non-financial Sectors*1 *1. Source: BOJ, FRB, ONS, Resona Bank 67
Slide 69: Overall Economy in Japan (4)
Overall Economy in Japan (4) Enterprise Bankruptcy*1 (Ybn) Total Debt (Construction/Real Estate Industries) (Number of cases) Total Debt (other) 1,500 2,500 Number of Bankrupt Case (right scale) 1,300 2,000 1,100 1,500 1,000 900 500 700 0 500 2008/3 2008/9* 2009/3 2009/9 2010/3 2010/9 2011/3 2011/9
Slide 70: Employment
Employment The active job openings-to-applicants ratio has exceeded 1.0 for the first time since 2007 The wage / salary level has been rising since 2009 Active job openings-to-applicants ratio*1 Wage / Salary*2 (JPY thousand) (times) 310 1.2 305 1.0 300 0.8 295 290 0.6 285 0.4 280 0.2 275 0.0 27
Slide 71: Exchange Rate / Corporate Earnings
Exchange Rate / Corporate Earnings Yen has depreciated and Japanese corporate profits have topped the pre-financial crisis level Exchange Rate(USD / JPY)*1 Ordinary Profit for Japanese Corporations*2 (JPY) (JPY tn) 125 60 120 115 50 110 40 105 100 30 95 90 20 85 10 80 75 0 2003/1/6 2003/1 2004/12/
Slide 72: JGB Holdings by Foreign Investors
JGB Holdings by Foreign Investors More than 90% of the JGBs outstanding are held by Japanese investors Domestic Holdings of Government Bonds*1 (%) 100 95.9 80 71.3 63.5 60 52.8 40 37.8 35.8 20 0 Japan US UK Germany France Italy *1. Source: BOJ, Board of Governors of the Federal Reserve System, UK
Slide 73: Aging of Japan's Population
Aging of Japan’s Population (Population Trends by Age / Actuals and Estimates)*1 Population aging is expected to accelerate Population Trends by Age Groups (mn individuals) under 65 65 to 74 75 and above 140 120 100 80 60 40 20 0 1950 1960 1970 1980 1990 2000 2010 2020 *1. Source: National Institu
Slide 74: Sales of Investment Trusts and Insurance
Sales of Investment Trusts and Insurance Demand for investment products has been increasing, and the ratio sold by banks has surged due to deregulation As customers buying life insurance through banks are still limited, there is a sizeable room for future expansion Total Net Assets of Investment
Slide 75: Housing Data
Housing Data New Housing Construction Starts*1 (units) 1,500,000 1,285,246 1,249,366 1,200,000 1,035,598 1,039,214 987,254 893,002 900,000 819,020 841,246 775,277 600,000 300,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 *1. Source: Ministry of Land, Infrastructure, Transport and Tourism 74
Slide 76: 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 77: Forward-looking statements notice
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 policies, laws, business practices and their in