Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

Review of FY2022 Achieved both annual and MMP targets (JPY150 bn and JPY160 bn, respectively) even as we enhanced our preparedness for downside risks Progress in income and cost structure reforms Achieved core income*¹ growth for the three consecutive year Change in the previous MMP(vs FY'19) Up JPY22.4 bn Up JPY8.1, or 6.3%, YoY (JPY bn) 138.1 129.9 115.6 116.3 FY2019 FY2020 FY2021 FY2022 Evolution of "Further Development" business Settlement related income: JPY72.5 bn (+4.9%, YoY) ● Succession related income: JPY25.0 bn (+7.0%, YoY) Term-end loan balance: JPY41.4 tn (+4.5%, YoY) New earnings pillars ⚫ Number of App DL*2: 7.65 million (+33.8%, YoY), of which external group 1.12 million Fund wrap income: JPY9.0 bn (+9.7%, YoY) Balance of fund wrap (including corporation) *2: JPY744.2 bn, of which, external group JPY56.1 bn Debit card income: JPY5.1 bn (+17.6%, YoY) Number of debit card issued: 3.15 million (+6.4%, YoY) Adapting to the evolving external environment Aligned ourselves with the interest rate environment at domestic and overseas ("Sound BS" ⇒ P.28) Took an ALM approach leveraging our retail deposit base, which boasts strong retention Enhanced resilience: Utilized hedging and other vehicles to ensure risk control ➤ Strengthened and stabilized profitability: Flexibly employed interest rate swaps, bonds held-to-maturity, etc. Our foreign bond portfolio management entered a reconstruction phase aimed at securing stable return over the medium to long term Executed additional measures to ensure portfolio soundness in the 4Q (KMB/MB) Yields improved to 3.5% due to restore soundness and effect of new investment, twofold growth from previous fiscal year ■Reduction of policy-oriented stocks Balance of listed stocks disposed in FY'22*3 JPY22.0 bn Net gain on sale in FY'22: JPY50.4 bn Plan to reduce JPY80.0 bn level in 4 years Progress rate compared to expected pace [JPY20.0 bn per year]: 110.1% Market value: JPY892.3 bn in '22/3 ⇒ JPY861.9 bn in '23/3 [JPY(30.3) bn reduction factor JPY(72.4) bn + market value factor JPY42.1 bn] Response to credit risk Credit costs in FY'22 JPY(15.9) bn [Of which, 4Q JPY(15.1) bn] ➤ Strengthen preparations for downside risks in light of the business environment, individual company risks, etc. Continued to strengthen monitoring for signs of abnormalities and providing rehabilitation assistance while closely watching changes in the macro environment *1. Net interest income from domestic loans and deposits + Fee income + Operating expenses *2. Including external group *3. Total of group banks, acquisition cost basis Resona Holdings, Inc. 5
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