Initiatives to Improve Corporate Value
Initiatives to Improve Corporate Value
Financial and non-financial approaches to improve corporate value
For improving evaluation of PBR
Realize a
turnaround and
improvement in
ROE
RORA
Û
Reduce
capital costs
Sustainable
society
resonance
Leverage
following risk
adjustment
Resona Group's
sustainable
growth
Analysis of the current status of ROE
ROE deteriorated over the course of the previous MMP
• Rapid expansion of BS / Growing volume of assets with low utilization
⇒ Need to improve risk-return by adopting a more proactive approach to
risk-taking endeavors
Downside risks materialized and affected P/L via the recording of major
credit-related costs, outlays resulting from measures to restore foreign bond
portfolio soundness, etc.
[Breakdown of
ROE components]
Total assets
accounted for as
RORA
Leverage following
risk adjustment
I of fiscal year-end
Net income
RWA*1
ROE
RWA*1
Total shareholders'
equity
FY'19
8.9%
0.7%
X
11.9 times
JPY60.5 tn
FY'20
6.8%
0.6%
11.3 times
JPY73.6 tn
FY'21
5.6%
0.5%
×
10.7 times
JPY78.1 tn
FY'22
7.6%
0.7%
X
9.9 times
JPY74.8 tn
(Average from
6.7%
=
0.6%
×
10.6 times
JPY75.5 tn
FY'20 to FY'22)
*1. Based on the finalization of Basel 3
Accelerate income and cost structure reforms
Fully utilize capital
Upgrading balance sheet management
Risk governance / High-quality, stable profit
Financial services group that contributes most to SX of retail
customers
■Improve employee engagement through human capital investment
Enhance the disclosure of both financial and non-financial
information
Measures to be implemented during the new MMP period
Improve profitability and asset efficiency via
the proactive utilization of capital
(Organic)
Enhance higher risk-return
lending assets
(Inorganic)
Enhance customer bases,
management resources and functions
Step up investment in human capital ⇒ [Further development &
new challenges] ✗[Co-creation & expansion of value]
Core income +JPY17.0 bn (Target)
Upgrade our mode of risk governance
Expand shareholder return
Aim for a total shareholder return ratio of around 50%
Seize upside profit
opportunities that arise at the
time of interest rate hikes
Further reduce policy-oriented
stockholdings
The pace of reduction:
JPY(20.0) bn per year
Resona Holdings, Inc.
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