Resona (8308) investor relations material

Executive summary

• Net income attributable to owners of parent rose 21.5% year-over-year to ¥258.7 billion, marking a record-high for the fifth consecutive year and exceeding the full-year target by ¥8.7 billion.

• ROE improved from 6.5% to 9.2% over the last three years, with a target of 12% (policy rate 1%) and up to 14% (policy rate 1.5%).

• New Midterm Management Plan (MMP) focuses on next-generation retail finance, targeting JPY 1 trillion in top-line revenue.

• Shift to the Next Stage initiative and recognition as an SX Brand in the banking industry.

• Ordinary income increased 21.5% to ¥1,357.2 billion, and ordinary profits grew 33.8% to ¥390.9 billion year-over-year.

Financial highlights

• Net interest income increased by ¥111.5 billion to ¥592.1 billion, with domestic loans and deposits contributing ¥57.8 billion.

• Fee income reached a record high of ¥230.5 billion, up ¥2.5 billion year-over-year, for the fifth consecutive year.

• Loan-to-deposit and security-to-deposit ratios recovered from 77% (March 2022) to 92%.

• Corporate loan balance increased 22% over the last three years; targeting over 15% growth in the next three years.

• Operating expenses rose by ¥21.6 billion to ¥465.8 billion, mainly due to higher personnel and IT costs.

Outlook and guidance

• FY2026 net income attributable to owners of parent is targeted at ¥310.0 billion, a 19.8% increase year-over-year.

• ROE target for FY2026 is 10.0%, with a medium-term plan aiming for 12–14% depending on policy rate scenarios.

• OHR target in the 40% range moved up by one year, now set for the final year of the new MMP.

• Dividend per share for FY2026 is planned to increase by ¥8 to ¥37, with a share repurchase authorization of up to ¥35.0 billion.

• Medium-term plan targets a total shareholder return ratio of 50% or more and a DOE of approximately 3.5% by FY2029.