Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

Sound Balance Sheet / Possible Impact of JPY Interest Rate Hikes (Provisional Calculation) Composition of loan portfolio End of Mar. 2023 Total assets JPY74.8 tn Composition of deposits *4 Deposits 47% 19.1 tn Fixed Rate 21% 8.8 tn Large companies Loans and other*1 21.2% 2% Fixed Rate 19% JPY 41.4 tn Individual Prime Rate 33% (JPY14.3 tn) 35% Corporation 2 SMES*1 38.2% (JPY 26.7 tn) 65% Personal deposits*1 61.5% Market Rate*3 Housing Prime 32% loans*1 Rate 14% 40.5% 13.1 tn Available-for- sale securities Bonds held-to- maturity Practice the stringent management of interest rate risks and liquidity risks with an eye to regulatory standards (e.g., IRRBB and LCR) and other factors BOJ current account An abundant JPY21 tn (consolidated basis) in cash deposits in BOJ's current accounts JPY 61.8 tn Liquid deposits 27% Corporation Liquid deposits 51% (JPY 19.1 tn) 33% Individua (JPY 38.0 tn) Time deposits 5% 67% Time deposits 16% Other 1% Other 0.3% Our distinctive uniqueness lies in a strong business focus on regional and retail customers A diverse and dispersed customer portfolio / Number of companies as their main bank : 68 thousand Unparalleled convenience offered via the app (6.52 million downloads) / Growing popularity as a mainstay tool for household finance Our liquidity deposits mainly consist of retail deposits with strong retention Ratio of personal deposits to total deposits: 61% Avg. cost of deposits: 0.005% Securities JPY8.3 tn Corporate JGB JPY2.9 tn*1 deposits*1 Other Assets JPY24.9 tn 30.8% Other 7.6% Deposits at BOJ*1 NCDs JPY0.8 tn Other liabilities JPY9.4 tn Corporate Individual Regional Business strategies JPY21.7 tn BOJ loans JPY3.5 tn Total equity JPY 2.5 tn Deposits <Possible impact of JPY interest rate hikes (provisional calculation)*5> Hikes in long-term interest rates (the abolishment of the yield curve control policy) A provisional calculation premised on shifting a portion of funds held in BOJ current accounts to Japanese government bonds, etc., with instruments in the five-year maturity zone as targets (assuming an increase in margin to around 0.4%) ⇒ +JPY20.0 bn Hikes in short-term interest rates (the lifting of the negative interest rate policy) A provisional calculation based on assumptions we have formulated for prevailing trends at the time of lifting that takes into account the status of deposits and loans as well as changes in current account interest rates at BOJ at the time of the introduction of said policy +JPY10.0 bn *1. Total of group banks *2. Including apartment loans *3. Market rate-linked loans include the fixed-rate (spread) loans maturing in less than one year *4. Domestic individual deposits + Domestic corporate deposits *5. The provisional calculation for the impact on annual profit reflects expected circumstances after the full effect of interest rate fluctuations materializes Resona Holdings, Inc. 28
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