Financial Highlights for
the First Quarter of Fiscal Year 2022
July 29, 2022
Outline of Financial Results for the 1Q of FY2022
- Net income attributable to owners of parent: JPY33.9 bn
- Down JPY0.3 bn, or 0.9%, YoY
- Progress rate against the full year target*1: 22.6%
- Actual net operating profit: JPY33.4 bn Down JPY11.7 bn, or 25.9%, YoY
Core income [Net interest income from loans and deposits - Fee income + Operating expenses]: Up JPY4.7 bn, YoY
- Gross operating profit: JPY135.7 bn Down JPY13.2 bn, or 8.9%, YoY
- Net interest income from domestic loans and deposits: Down JPY1.6 bn, YoY
Average loan balance: +1.82%, YoY
Loans rate: down by 3bps, YoY
[Excluding loans to the Japanese government and others] Average loan balance: +1.64%, YoY
Loans rate: down by 3bps, YoY
Both loans balance and loans rate were in line with the plan - Fee income: Up JPY4.6 bn, Fee income ratio: 40.7%
Fee income increased 9.2%, YoY.
Increased driven by growth in succession-related - Net gains on bonds (including futures): Down JPY17.9 bn, YoY
Implemented to restore soundness of securities portfolio (Costs to restore securities portfolio soundness in
1Q of FY2022: Approx. JPY24.0 bn) - Operating expenses: JPY102.2 bn (cost) Decreased by JPY1.6 bn, YoY
Both personnel expenses and non-personnel expenses reduced
- Credit related expenses: JPY5.6 bn (cost) Decreased by JPY1.5 bn, YoY
Credit costs have posted 14.7% against the full year plan of JPY38.0 bn
FY2022 | |||||||||
HD consolidated | YoY change | Progress rate | |||||||
1Q | |||||||||
(JPY bn) | vs. Target*1 | ||||||||
% | |||||||||
(a) | (b) | (c) | (d) | ||||||
Net income attributable to | (1) | 33.9 | (0.3) | (0.9)% | 22.6% | ||||
owners of parent | |||||||||
EPS (yen) | (2) | 14.22 | +0.34 | +2.4% | |||||
BPS (yen) | (3) | 1,005.99 | (28.70) | (2.7)% | |||||
Gross operating profit | (4) | 135.7 | (13.2) | (8.9)% | |||||
Net interest income | (5) | 102.3 | (1.4) | ||||||
NII from loans and deposits*2 | (6) | 83.1 | (1.6) | ||||||
Fee income | (7) | 55.3 | +4.6 | ||||||
Fee income ratio | (8) | 40.7% | +6.7% | ||||||
Trust fees | (9) | 5.3 | +0.3 | ||||||
Fees and commission | (10) | 49.9 | +4.2 | ||||||
income | |||||||||
Other operating income | (11) | (21.9) | (16.4) | ||||||
Net gains on bonds | (12) | (26.1) | (17.9) | ||||||
(including futures) | |||||||||
Operating expenses (excluding group | (13) | (102.2) | +1.6 | +1.6% | |||||
banks' non-recurring items) | |||||||||
Cost income ratio (OHR) | (14) | 75.3% | +5.5% | ||||||
Actual net operating profit | (15) | 33.4 | (11.7) | (25.9)% | |||||
Net gains on stocks | (16) | 18.1 | +4.1 | ||||||
(including equity derivatives) | |||||||||
Credit related expenses, net | (17) | (5.6) | +1.5 | ||||||
Other gains, net | (18) | 0.5 | +3.3 | ||||||
Net income before income taxes | (19) | 46.4 | (2.6) | (5.3)% | |||||
and non-controlling interests | |||||||||
Income taxes and other | (20) | (12.3) | +2.4 | ||||||
Net income attributable to | (21) | (0.1) | (0.1) | ||||||
non-controlling interests | |||||||||
*1. | Full year target of FY2022: JPY150.0 bn | 1 |
*2. | Total of non-consolidated domestic banking accounts of group banks, deposits include NCDs |
Review of the 1Q of FY2022
- Steady progress in income and cost structure reforms
Core income [Net interest income from loans and deposits + Fee income + Operating expenses] remained on an increasing trend
- Progress rate against the earnings targets for FY2022 (total of group banks basis): 25.6%
- Increased driven by growth in fee income (up JPY4.6 bn, or 9.2%, YoY)
[Core income] | +14.9%, |
(JPY bn) | YoY |
31.5 | 36.2 |
24.9 |
FY2020 | FY2021 | FY2022 |
1Q | 1Q | 1Q |
- Implemented to restore soundness of securities portfolio
- Costs to restore securities portfolio soundness in 1Q of FY2022: Approx. JPY24.0 bn
- Improving the yield of foreign bonds and ensuring future flexibility in the management by reduction of risk volume were realized via a series of measures to restore the soundness of our securities portfolio from FY2021
'21/3 | '22/6 |
BPV (foreign bonds)： (5.1) | ⇒ (2.6) |
- Progress of the reduction of policy-oriented stocks
- Balance of listed stocks disposed in 1Q of FY2022*1: JPY5.3 bn (Down 0.3%, YoY)
Net gain on sale in 1Q of FY2022: JPY17.7 bn (Up 61.3%, YoY)
- Balance of listed stocks disposed in 1Q of FY2022*1: JPY5.3 bn (Down 0.3%, YoY)
Expansion consulting business based on F2F | Further |
Development |
Succession-related income: 4.6 bn (+45.7%, YoY)
Asset formation support business income: 10.3 bn (+2.7%, YoY)
Focused business has grown to "earnings pillar" New Earnings
Pillars
- # of App DL: 5.41 million (+34.9%, YoY), and external group 0.81 million
-
Fund wrap income: JPY2.2 bn (+25.2%, YoY)
Balance of fund wrap*2: JPY751.0 bn (+23.4%, YoY).
Of which, external group JPY45.3 bn
-
Debit card income: JPY1.0 bn (+15.9%, YoY)
# of debit card issued: 3.09 million (+18.6%, YoY)
Breaking free of the bank model / | New Seeds |
Initiatives for next growth | for Growth |
Progress of financial digital platform | |
Roll out fund wrap to regional financial institutions | |
DX | • Keiyo bank (Jun. '22~), The 77 Bank (Collaborative |
research started in May '22) | |
Help make bill-paying more efficient | |
Resona One-Stop Payment (RB, Jul. '22~) | |
SX | Simplified CO2 emissions calculation service (Apr. '22~) |
New | Regional revitalization via "Education" × "Agriculture" |
business "Loco Door Co., Ltd." (Established in Jul. '22） |
*1. Total of group banks, acquisition cost basis *2. Including corporation and external group | 2 |
Breakdown of Financial Results
Resona Holdings | Total of group banks | Difference | ||||||||||||||||||||||||||
(JPY bn) | (Consolidated) | Saitama | Total of | |||||||||||||||||||||||||
Resona | group | |||||||||||||||||||||||||||
Resona | ||||||||||||||||||||||||||||
YoY | YoY | Bank | YoY | Bank | YoY | banks under | YoY | |||||||||||||||||||||
KMFG | ||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) | (a)-(c) | ||||||||||||||||||
Gross operating profit | (1) | 135.7 | (13.2) | 122.1 | (12.5) | 63.4 | (8.3) | 24.7 | (4.0) | 33.8 | (0.1) | 13.5 | ||||||||||||||||
Net interest income | (2) | 102.3 | (1.4) | 101.1 | (0.8) | 53.9 | (0.8) | 20.2 | (1.0) | 26.8 | +0.9 | 1.2 | ||||||||||||||||
NII from domestic loans and deposits | (3) | 83.1 | (1.6) | 42.9 | (0.7) | 16.8 | (0.5) | 23.4 | (0.3) | |||||||||||||||||||
Net gains on cancellation of investment trusts *1 | (4) | 0.0 | (0.0) | 0.1 | +0.0 | 0.0 | +0.0 | － | (0.0) | 0.1 | +0.0 | (0.1) | ||||||||||||||||
Fee income | (5) | 55.3 | +4.6 | 43.2 | +4.7 | 27.4 | +3.5 | 9.2 | +1.3 | 6.5 | (0.2) | 12.0 | ||||||||||||||||
Fee income ratio | (6) | 40.7% | +6.7% | 35.3% | +6.8% | 43.1% | +10.0% | 37.4% | +10.1% | 19.2% | (0.6)% | |||||||||||||||||
Trust fees | (7) | 5.3 | +0.3 | 5.3 | +0.3 | 5.3 | +0.3 | 0.0 | +0.0 | － | － | (0.0) | ||||||||||||||||
Fees and commission income | (8) | 49.9 | +4.2 | 37.8 | +4.3 | 22.0 | +3.1 | 9.2 | +1.3 | 6.5 | (0.2) | 12.1 | ||||||||||||||||
Other operating income | (9) | (21.9) | (16.4) | (22.2) | (16.4) | (17.9) | (11.1) | (4.7) | (4.4) | 0.4 | (0.9) | 0.2 | ||||||||||||||||
Net gains on bonds (including futures) *1 | (10) | (26.1) | (17.9) | (26.1) | (17.8) | (20.8) | (12.2) | (5.0) | (4.5) | (0.3) | (1.1) | 0.0 | ||||||||||||||||
Operating expenses | (11) | (102.2) | +1.6 | (95.1) | +2.1 | (51.8) | +0.6 | (18.7) | +0.4 | *2 | (24.5) | +1.0 | (7.0) | |||||||||||||||
(excluding group banks' non-recurring items) | ||||||||||||||||||||||||||||
Cost income ratio (OHR) | (12) | 75.3% | +5.5% | 77.9% | +5.6% | 81.7% | +8.6% | 75.5% | +9.2% | 72.6% | (2.8)% | |||||||||||||||||
Actual net operating profit | (13) | 33.4 | (11.7) | 26.8 | (10.4) | 11.5 | (7.7) | 6.0 | (3.6) | 9.2 | +0.9 | 6.5 | ||||||||||||||||
Core net operating profit *3 | (14) | 52.5 | +8.5 | 32.3 | +5.6 | 10.7 | +0.8 | 9.4 | +2.0 | |||||||||||||||||||
(excluding gains on cancellation of investment trusts) | ||||||||||||||||||||||||||||
Net gains on stocks (including equity derivatives) | (15) | 18.1 | +4.1 | 17.9 | +4.2 | 16.5 | +5.4 | 0.8 | (1.4) | 0.5 | +0.2 | 0.1 | ||||||||||||||||
Credit related expenses, net | (16) | (5.6) | +1.5 | (5.9) | +0.8 | (4.7) | +1.4 | (0.3) | (0.6) | (0.7) | +0.0 | 0.3 | ||||||||||||||||
Other gains, net | (17) | 0.5 | +3.3 | 0.4 | +2.9 | 1.2 | +2.6 | (0.1) | +0.2 | (0.7) | +0.0 | 0.1 | ||||||||||||||||
Net income before income taxes | (18) | 46.4 | (2.6) | 39.3 | (2.3) | 24.6 | +1.9 | 6.4 | (5.5) | 8.2 | +1.2 | 7.1 | ||||||||||||||||
Income taxes and other | (19) | (12.3) | +2.4 | (10.2) | +2.0 | (6.3) | +0.3 | (1.8) | +1.6 | (2.1) | +0.0 | |||||||||||||||||
Net income attributable to non-controlling interests | (20) | (0.1) | (0.1) | |||||||||||||||||||||||||
Net income | (21) | 33.9 | (0.3) | 29.0 | (0.3) | 18.2 | +2.2 | 4.6 | (3.8) | 6.1 | +1.3 | |||||||||||||||||
(attributable to owners of parent) | ||||||||||||||||||||||||||||
*1. Losses on cancellation of investment trusts are posted in the net gains on bonds since net of the losses and dividends from investment trusts become negative | ||||||||||||||||||||||||||||
1Q of FY'21(RB): Losses on cancellation of investment trusts: JPY(5.9) bn, dividends from investment trusts: + JPY0.6 bn → | net amount: JPY(5.3) bn | |||||||||||||||||||||||||||
1Q of FY'22(SR/MB): Losses on cancellation of investment trusts: JPY(1.2) bn, dividends from investment trusts: + JPY0.1 bn | → | net amount: JPY(1.1) bn | ||||||||||||||||||||||||||
*2. Exclude goodwill amortization by KMB, JPY(0.1) bn, related to acquisition of former Biwako Bank | 3 | |||||||||||||||||||||||||||
*3. Actual net operating profit - Gains on cancellation of investment trusts - Net gains on bonds |
Factors for the Changes in Net Income Attributable to | ||
HD | ||
Owners of Parent (YoY Comparison) | Consolidated | |
（JPY bn） | Actual net operating profit (11.7) | |
Gross operating profit (13.2) |
NII from | Fees and | |||||||||||||||
domestic loans | commission | |||||||||||||||
and deposits Other NII | income | |||||||||||||||
(1.6) | +0.1 | +4.6 | ||||||||||||||
Volume factor | +1.4 | Other GOP, | ||||||||||||||
Rate factor | (3.1) | net | ||||||||||||||
(16.4) | ||||||||||||||||
Insurance | +0.8 | |||||||||||||||
Fund wrap | +0.4 | |||||||||||||||
34.2 | Corporate solution | +0.4 | ||||||||||||||
Real estate | +0.5 | |||||||||||||||
Settlement-related | +0.5 | |||||||||||||||
Of which, | ||||||||||||||||
KMFG | ||||||||||||||||
Net gains on bonds | (17.9) | |||||||||||||||
6.4 | ||||||||||||||||
(including futures) | ||||||||||||||||
Yen bonds | +1.7 | |||||||||||||||
Foreign bonds | (19.6) |
(0.3), | ||||||||||||||||
Credit- | Other | YoY | ||||||||||||||
Net gains | related | items, | ||||||||||||||
net | ||||||||||||||||
on stocks | expenses, | |||||||||||||||
+5.5 | ||||||||||||||||
(including | net | |||||||||||||||
equity | ||||||||||||||||
＋1.5 | 33.9 | |||||||||||||||
Operating | derivatives) | |||||||||||||||
expenses | ＋4.1 | |||||||||||||||
+1.6 | Of which, | |||||||||||||||
KMFG | ||||||||||||||||
Act. | ||||||||||||||||
(7.1) | 6.8 | |||||||||||||||
'21/6 | ||||||||||||||||
'22/6 | (5.6) | |||||||||||||||
Personnel | ETFs and other | (2.3) | ||||||||||||||
expenses | +1.0 | |||||||||||||||
Policy-oriented stocks | +6.6 | |||||||||||||||
Non-personnel | ||||||||||||||||
(Act.) | ||||||||||||||||
expenses | +0.9 | |||||||||||||||
'21/6 | 11.2 | |||||||||||||||
'22/6 | 17.9 | |||||||||||||||
FY2021 | FY2022 |
1Q | 1Q |
4
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