RESONA HOLDINGS, INC. Financial Highlights for the First Half of Fiscal Year 2021
November 9, 2021
Outline of Financial Results for the 1H of FY2021
- Net income attributable to owners of parent: JPY80.8 bn
-
Up JPY24.4 bn, or 43.3%, YoY
Progress rate against the full year target *1 : 55.7%
-
Up JPY24.4 bn, or 43.3%, YoY
- Actual net operating profit: JPY116.8 bn
Up JPY5.7 bn, or 5.1%, YoY - Gross operating profit: JPY323.1 bn, Up JPY5.8 bn, or 1.8%, YoY Core income [Net interest income from loans and deposits
- Fee income + Operating expenses] : Up JPY12.2 bn, YoY
-
Net interest income from domestic loans and deposits: Up JPY0.4 bn, YoY
Average loan balance: +3.50%, YoY, Loan rate: down by 3bps, YoY
[Excluding loans to the Japanese government and others]
Average loan balance: +2.32%, YoY, Loan rate: down by 2bps, YoY
Both loan balance and loan rate were in line with the plan. - Fee income: Up JPY12.0 bn, YoY, Fee income ratio : 32.6%
Increased driven by growth in asset formation support business and corporate solution. - Net gains on bonds (including futures): Down JPY14.7 bn, YoY
-
Operating expenses: JPY206.6 bn, Increase by JPY0.2 bn, YoY
Improved compared to the plan,
due to the progress of cost reduction of KMFG.
⇒ Consolidated cost income ratio of KMFG：71.0% [ (8.8)%, YoY ]
- Credit related expenses: JPY17.0 bn (cost)
Decreased by JPY6.1 bn, YoY
New bankruptcy in specific reserve was at a low level.
Credit costs have posted 38.6% against the full year guidance.
- Full year target of JPY145.0 bn and full year dividend forecast of 21 yen remain unchanged
- Established long-term sustainability targets (Jun. '21)
- Share buyback up to JPY10.0 bn
-
Period of acquisition : Nov. 10 - Dec. 20
Plan to cancel all of the treasury shares to be acquired ]
FY2021 | |||||||||
HD consolidated | YoY change | Progress rate | |||||||
1H | |||||||||
(JPY bn) | v s. Target*1 | ||||||||
% | |||||||||
(a) | (b) | (c) | (d) | ||||||
Net income attributable to | (1) | 80.8 | +24.4 | +43.3% | 55.7% | ||||
owners of parent | |||||||||
EPS (yen) | (2) | 33.09 | +8.55 | +34.8% | |||||
BPS (yen) | (3) | 1,056.45 | +85.48 | +8.8% | |||||
Gross operating profit | (4) | 323.1 | +5.8 | +1.8% | |||||
Net interest income | (5) | 214.0 | +9.5 | ||||||
NII from loans and deposits*2 | (6) | 169.8 | +0.4 | ||||||
Fee income | (7) | 105.5 | +12.0 | ||||||
Fee income ratio | (8) | 32.6% | +3.1% | ||||||
Trust fees | (9) | 10.1 | +0.8 | ||||||
Fees and commission | (10) | 95.3 | +11.1 | ||||||
income | |||||||||
Other operating income | (11) | 3.5 | (15.8) | ||||||
Net gains on bonds | (12) | (3.2) | (14.7) | ||||||
(including futures) | |||||||||
Operating expenses (excluding group | (13) | (206.6) | (0.2) | (0.1)% | |||||
banks' non-recurring items) | |||||||||
Cost income ratio (OHR) | (14) | 63.9% | (1.0)% | ||||||
Actual net operating profit | (15) | 116.8 | +5.7 | +5.1% | |||||
Net gains on stocks | (16) | 24.4 | +21.5 | ||||||
(including equity derivatives) | |||||||||
Credit related expenses, net | (17) | (17.0) | +6.1 | ||||||
Other gains, net | (18) | (7.9) | (1.2) | ||||||
Net income before income taxes | (19) | 116.3 | +32.1 | +38.1% | |||||
and non-controlling interests | |||||||||
Income taxes and other | (20) | (35.8) | (11.2) | ||||||
Net income attributable to | (21) | 0.2 | +3.5 | ||||||
non-controlling interests | |||||||||
*1. | Full year target of FY2021: JPY145.0 bn *2. Total of non-consolidated domestic banking accounts of group banks, deposits include NCDs | 1 |
*3. | Negative figures represent items that would reduce net income |
Reflection of the 1H of FY2021
-
Steady progress in income and cost structure reforms : Core income remained on an increasing trend
Core income [Net interest income from loans and deposits + Fee income + Operating expenses] : JPY68.7 bn
(Up JPY12.2 bn, YoY , Up JPY6.4 bn, vs FY'19 1H)
-
Solid evolution of Kansai Mirai Financial Group (KMFG)
KMFG consolidated net income : JPY10.6 bn (Up JPY 5.3 bn, YoY) - Accelerating reforms with "2 X" as the driver
SX | Established long-term sustainability targets | DX | Launch of Financial Digital Platform concept |
- Provide our valuable financial services to customers facing issues in a changed environment
Change in customers' issues | Updates on major businesses in 1H |
Stable funding
Strengthen
financial base
Changes
in lifestyle norms
Acceleration of
digitalization
Growing awareness
of preparedness
Review future plans
- Loans and capital finance support for corporate customers
- COVID-19related loan origination*1: JPY4.6 tn
- Utilizing capital support fund etc (Mar. '20~ fund total of JPY31.0 bn ) : Fund origination JPY8.4 bn
- Non face-to-face and cashless transactions
- Resona Group App: 4.31 million downloads, up 1.36 million, or 46.1%, YoY. Mebuki FG two banks 0.44 million downloads (Mar. '21~)
- Number of debit card issued: 2.65 million, up 0.42 million, or 18.9%, YoY
- Asset formation support
- Balance of fund wrap (including corporation*2): JPY671.7 bn, up 48.2%, YoY . Of which, Bank of Yokohama JPY26.5 bn (Apr. '21~)
- Asset and business succession
- Succession-relatedincome (succession related trust , Real estate, M&A) : JPY10.4 bn, up 32.0%, YoY
Resona Corporate Investment
*1. | Cumulative total based on reporting from four group banks from Mar. 10, '20 to Sep. 30, '21 | 2 |
*2. | Including balance of fund wrap in banks other than group banks |
For the Creation of a Sustainable Society
Aim to become the most significant contributor to retail customers' success in SX*1
- Overview of Resona Group's SX
Our recognition | Sustainable | Resonance | Resona's |
of the business environment | society | sustainable growth | |
The accelerating trend toward SX | |||
Our role | Achieve our vision |
Our vision
Commitment (RSC2030) | Long-Term | |
Sustainability Targets | ||
Local communities' SX
Sustainability activities to accelerate efforts | Customers' SX |
- Long-termsustainability targets
1. Retail Transition Finance
Cumulative total of JPY10 trillion
(FY2021 to FY2030)
Financing coverage:
Financing*2 aimed at helping retail customers update their awareness,
transform their modes of behavior and stably move forward from
their current situation
Established in June '21
2. Carbon Neutrality
Net zero CO2 emissions
(By the end of FY2030, Scope 1 & 2)
Reduce CO2 emissions attributable to energy used by the Group to Net Zero by the end of FY2030 via the proactive
switchover to renewable energy
3. Empowerment and Promotion of Women
10% or greater growth in the ratio of women in various senior positions from the current levels
(By the end of FY2030)
Ratio of female directors and executive officers*3: 30% or more
Ratio of female senior managers*4: 20% or more
Ratio of female line managers*4: 40% or more
*1. Sustainability Transformation *2. Including financing for such green projects as renewable energy generation, as well as large corporate | 3 |
financing involving third-party verification *3. HD *4. Sum of six group companies (HD, RB, SR, KMFG, KMB and MB) |
Breakdown of Financial Results
Resona Holdings | Total of group banks | Difference | |||||||||||||||||||||||||||
(JPY bn) | (Consolidated) | Resona | Saitama | Total of | |||||||||||||||||||||||||
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) | 323.1 | +5.8 | 294.6 | +5.3 | 166.2 | (0.9) | 59.5 | +1.5 | 68.8 | +4.7 | 28.5 | |||||||||||||||||
Net interest income | (2) | 214.0 | +9.5 | 210.3 | +9.4 | 114.1 | +7.5 | 43.9 | +2.0 | 52.3 | (0.0) | 3.6 | |||||||||||||||||
NII from domestic loans and deposits | (3) | 169.8 | +0.4 | 87.5 | +1.4 | 34.6 | (0.4) | 47.6 | (0.5) | ||||||||||||||||||||
Gains/(losses) on cancellation of investment trusts | (4) | 0.4 | (0.0) | 0.4 | +0.4 | *1 | － | +2.1 | 0.2 | (0.7) | 0.2 | (0.9) | 0.0 | ||||||||||||||||
Fee income | (5) | 105.5 | +12.0 | 81.3 | +11.4 | 52.5 | +5.9 | 14.5 | +0.8 | 14.2 | +4.5 | 24.2 | |||||||||||||||||
Fee income ratio | (6) | 32.6% | +3.1% | 27.6% | +3.4% | 31.5% | +3.7% | 24.4% | +0.8% | 20.6% | +5.5% | ||||||||||||||||||
Trust fees | (7) | 10.1 | +0.8 | 10.2 | +0.9 | 10.1 | +0.9 | 0.0 | +0.0 | 0.0 | +0.0 | (0.0) | |||||||||||||||||
Fees and commission income | (8) | 95.3 | +11.1 | 71.1 | +10.5 | 42.3 | +5.0 | 14.5 | +0.8 | 14.2 | +4.5 | 24.2 | |||||||||||||||||
Other operating income | (9) | 3.5 | (15.8) | 2.8 | (15.5) | (0.4) | (14.4) | 1.0 | (1.3) | 2.3 | +0.2 | 0.6 | |||||||||||||||||
Net gains on bonds (including futures) | (10) | (3.2) | (14.7) | (3.2) | (14.6) | *1 | (4.7) | (13.5) | 0.3 | (1.3) | 1.1 | +0.2 | 0.0 | ||||||||||||||||
Operating expenses | (11) | (206.6) | (0.2) | (193.6) | +0.2 | (105.1) | (2.0) | (38.0) | (0.7) | *2 | (50.4) | +2.9 | (12.9) | ||||||||||||||||
(excluding group banks' non-recurring items) | |||||||||||||||||||||||||||||
Cost income ratio (OHR) | (12) | 63.9% | (1.0)% | 65.7% | (1.3)% | 63.2% | +1.5% | 63.9% | (0.4)% | 73.2% | (10.0)% | ||||||||||||||||||
Actual net operating profit | (13) | 116.8 | +5.7 | 100.9 | +5.6 | 61.0 | (2.9) | 21.4 | +0.8 | 18.4 | +7.7 | 15.9 | |||||||||||||||||
Core net operating profit | *3 | (14) | 102.1 | +16.5 | 65.0 | +6.5 | 20.1 | +1.6 | 16.9 | +8.3 | |||||||||||||||||||
(excluding gains/(losses) on cancellation of investment trusts) | |||||||||||||||||||||||||||||
Net gains on stocks (including equity derivatives) | (15) | 24.4 | +21.5 | 24.2 | +19.7 | 20.6 | +20.1 | 3.1 | +0.8 | 0.4 | (1.2) | 0.2 | |||||||||||||||||
Credit related expenses, net | (16) | (17.0) | +6.1 | (14.9) | +4.9 | (10.0) | +3.6 | (0.5) | +1.6 | (4.3) | (0.2) | (2.0) | |||||||||||||||||
Other gains/(losses), net | (17) | (7.9) | (1.2) | (6.8) | (0.7) | (3.7) | (0.2) | (1.1) | +0.2 | (1.8) | (0.6) | (1.0) | |||||||||||||||||
Net income before income taxes | (18) | 116.3 | +32.1 | 103.4 | +29.6 | 67.8 | +20.5 | 22.8 | +3.5 | 12.7 | +5.5 | 12.9 | |||||||||||||||||
Income taxes and other | (19) | (35.8) | (11.2) | (31.1) | (9.5) | (20.1) | (6.1) | (6.8) | (1.1) | (4.2) | (2.2) | ||||||||||||||||||
Net income attributable to non-controlling interests | (20) | 0.2 | +3.5 | ||||||||||||||||||||||||||
Net income | (21) | 80.8 | +24.4 | 72.2 | +20.1 | 47.6 | +14.4 | 16.0 | +2.4 | 8.4 | +3.2 | ||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
(Losses on cancellation of investment trusts: JPY(5.1) bn, dividends from investment trusts: +JPY2.3 bn → | net amount: JPY(2.8) bn) | ||||||||||||||||||||||||||||
*2. Exclude goodwill amortization by KMB, JPY(0.3) bn, related to acquisition of former Biwako Bank | 4 | ||||||||||||||||||||||||||||
*3. Actual net operating profit - Gains on cancellation of investment trusts - Net gains on bonds |
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Resona Holdings Inc. published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 07:02:11 UTC.
