Message from the Management

Thank you for your continued support and patronage of the Resona Group.

In the fiscal year ended March 31, 2024,  Japan’s economy regained vitality after overcoming fallout from the COVID-19 pandemic, returning to a modest recovery track despite various ongoing issues. Moreover, the lifting of the negative interest rate policy ushered in a new phase as the domestic monetary environment began moving toward normalization.

Against this backdrop, net income attributable to owners of the parent stood at 158.9 billion yen. Although this represents a decrease of 1.4 billion yen from the previous fiscal year, the achievement ratio vis-à-vis our annual target is 105.9%. At the same time, core income^*1 saw an upturn in the second half and totaled 158.7 billion yen at the close of the fiscal year. This represents an achievement ratio of 105.8% versus our annual target.
The non-performing loan (NPL) ratio was 1.34%, while the capital adequacy ratio amounted to 12.85%, suggesting a robust level of financial soundness. With regard to dividends for the fiscal year ending March 31, 2025, we forecast annual common dividends of 23 yen per share, up 1 yen per share year on year. Furthermore, we plan to execute share buybacks during the period leading up to June 21, 2024, with a maximum of 20 yen billion being set aside to this end as of May 14, 2024. Looking ahead, we will strive to enhance the content of shareholder returns in a manner that balances them with measures to secure financial soundness and profitability as well as opportunities for growth investment.

In the fiscal year ended March 31, 2024, the first year of the current medium-term management plan (MMP), we strove to accelerate efforts aimed at realizing “Retail No.1” and, to this end, tackled various new challenges. As a result, we made steady progress in the implementation of strategies under the MMP even we geared up the above endeavors while expanding growth investment.

Specifically, we have successfully enhanced our fee businesses amid ever-faster changes in the business environment. Meanwhile, our deposit-lending business is in the process of achieving a revival that fully leverages our customer base, which is where the Resona Group’s unique strength lies. Having taken a proactive approach to meeting the diverse types of funding demand that emerge when addressing issues customers are confronting, we have seen a greater-than-expected increase in the lending balance. In addition, we have executed inorganic growth investment measures,^*2 including making two leasing companies wholly owned subsidiaries and strengthening a strategic capital and business alliance with Digital Garage, Inc. Going forward, we will continue enhancing “Customer bases”, “Functions” and “Management resources” via, for example, engagement in co-creation involving external partners. By doing so, we will deliver new value to customers even as we secure growth opportunities.

In April 2024, Resona Holdings, Inc. completed an absorption-type merger with Kansai Mirai Financial Group, Inc. making progress in the development of a structure supporting a “One-platform, multi-regional strategy.” Under the umbrella of Resona Holdings, this structure will enable four Group banks to deliver optimal solutions aligned with characteristics of regions they serve. Also, the integration of Minato Bank’s back-office systems is scheduled for 2025. Through these and other measures, we will push ahead with further strengthening the consolidated management of Group companies.

We will take full advantage of new ideas that transcend the conventional framework of financial services to address issues confronting our customers and society as a whole. This is how we will embody our Purpose, “Beyond Finance, for a Brighter Future.” Simultaneously, we will endeavor to realize “Retail No.1” by rallying the overall strength of the Resona Group.

I ask for your continued support and encouragement as we move forward.

1. *1Net interest income from domestic loans and deposits + Interest on yen bonds, etc. + Fee income - Operating expenses; actual basis excluding extraordinary factors: (i) +2.4 billion yen attributable to the impact of the management of money held in trust (jointly entrusted by multiple customers): and (ii) (1.1) billion yen due to the consolidation of two lease subsidiaries.
2. *2Investment aimed at achieving growth via alliances with, or the acquisition of, external businesses, etc.