Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

Outline of Eligible Capital under the Japanese Domestic Std. Subordinated debts, preferred securities and non-convertible preferred shares • Subordinated debts and preferred securities issued under the Basel 2 can be fully included in Core Capital as of the end of March 2014. These grandfathering items are subject to a 10-year phase-out rule starting from March 2015. • Non-convertible preferred shares*1 can be fully included in Core Capital until March 2019 and will be subject to a 10-year phase-out rule starting from March 2020. Capital instruments qualified for transitional arrangement to be phased out Common shares Retained earnings At least 4% Core Capital Non-controlling interests after adjustments Preferred shares with a mandatory conversion clause At least 4% General reserve for possible loan losses Excess of eligible reserve relative to expected losses (banks adopting the IRB approach only) Deduction items to be phased in Investments in other financial institutions, DTA, intangibles, retirement benefit-related assets, etc. (No deduction as of March 2014 and thereafter subject to a 5-year phase-in rule) Mar. 2014 Mar. 2019 *1. Non-cumulative preferred shares other than those with a mandatory conversion feature Mar. 2024 Mar. 2029 Resona Holdings, Inc. 82
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