Initiatives to Improve Corporate Value
Capital Management of the MMP (1)
Enter a new phase in which we can step up the utilization of capital ā
Financial soundness
Maintain the CET1 ratio*2 at the 10% range
CET1 ratio as of Mar. '23: Approx. 10%
Aim for ROE*1 of 8%
Growth investment
Organic
Inorganic
Expand loan assets, etc. with high returns relative to risk
Expanding customer bases, management resources
and functions
Improve Corporate Value
Shareholder return
Enhance the content of shareholder returns in a way that gives due consideration to maintaining soundness
and securing growth investment opportunities
Aim for a total shareholder return ratio of around 50% even as we continue to deliver a stable dividend stream
ā¤ FY'22: 40.6%
[Composition of capital utilization]
<Funding>
580.0
(JPY bn)
<Utilization>
580.0
New MMP 580.0
Target on total shareholder return ratio
"50% level"
Cumulative
profit to be
earned over
the course of
the new
MMP
Shareholder
return
[In which, loans]
Organic investment 240.0
Amount of funds
(Vs. 23/3)
Loans
Corporate loans
Housing loan
+2,630.0 (+13%)
+1,000.0 (+7%)
[In which, system]
+30.0
System/Markets
Capital stock as
M&A
In-organic investment
of Mar. 31, '23
Previous MMP 395.0
Target on total shareholder
Expansion return ratio "Middle 40% range
in the medium term" 175.0
Required volume
of capital
Organic investment
+170.0
+30.0
X 2.6
90.0
+20.0
Change
*1. Net income attributable to owners of parent / Total shareholders equity (simple sum of the balance at the beginning and the end of the term/2)
*2. Based on the full enforcement of the finalized Basel 3 regulations under the international standard; excluding net unrealized gains on
available-for-sale securities
Allocated to measures to
improve soundness
130.0
Resona Holdings, Inc.
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