Resona (8308) Q4 2025 earnings summary

Executive summary

• Net income attributable to owners rose 34.2% year-over-year to JPY213.3 bn, surpassing plans and marking a record high for the fourth consecutive year.

• Core net operating profit reached JPY288.5 bn, up 21% year-over-year, with gross operating profit at JPY691.6 bn, driven by higher net interest and fee income.

• Earnings power is reviving, supported by rising interest rates, a strong deposit base, and record-high fee income for four consecutive years.

• Structural reforms, including digital transformation and back office integration, are underway to support multi-regional growth and efficiency.

• Shareholder returns enhanced with higher dividends and share buybacks, and new ROE disclosure standards.

Financial highlights

• Net income attributable to owners was JPY213.3 bn, up 34.2% year-on-year, exceeding JPY200 bn for the first time in seven years.

• Core net operating profit for the previous fiscal year was JPY288.5 bn, up 21% year-on-year.

• Net interest income grew to JPY480.4 bn (+JPY58.7 bn YoY); fee income reached JPY227.9 bn (+JPY14.4 bn YoY).

• Top line is targeted to reach JPY800 bn, the highest in 19 years.

• ROE improved to 9.3% (+2.0 pts YoY); TSE standard ROE at 7.8%.

Outlook and guidance

• FY2025 net income is projected at JPY240.0 bn, up JPY26.7 bn year-on-year.

• Core net operating profit forecasted at JPY335.0 bn (+JPY46.5 bn YoY); gross operating profit at JPY734.5 bn (+JPY112.0 bn YoY).

• Dividend per share planned to increase by 4 yen to 29 yen for FY2025; DOE target of ~3% by FY2029.

• ROE is planned to rise from 7.8% last year to 8.4% this year, with a long-term target of 10%.

• Cost income ratio (OHR) targeted to reach the upper 50% range.