Resona Group Integrated Report 2026

Resona Group launched its new MMP in April 2026. My understanding is that, in pursuit of your Purpose, you envisioned the Long-Term Vision, revised your Materiality from a long-term perspective, and formulated the new three-year MMP. Could each of you share your reflections on that process?

In a word, I feel that by “back-casting” from a long-term perspective, we were able to clearly define the direction we need to pursue over these three years. Resona Group upholds its Purpose, “Beyond Finance, for a Brighter Future.” and its Long-Term Vision, “Retail No.1,” as the means to realize that Purpose. Over the course of more than a year, we were able to engage in in-depth discussions aimed at clarifying the direction Resona Group is headed toward so that all stakeholders could gain a clear understanding of it.

This is my third time being involved in formulating an MMP at Resona Group, and I feel that this time we achieved our most substantive discussions yet. There are two reasons for this. First, as Chair Yamauchi mentioned, we envisioned our desired long-term future and worked by back-casting from that. Second, we were able to envision the future of the entire group from the perspective of Resona Holdings, rather than simply compiling the plans of the Group banks.

Regarding our Purpose, “Beyond Finance, for a Brighter Future.” we held repeated discussions at board meetings about what “Beyond Finance” means and what should be done “for a Brighter Future.” Through these discussions, we were able to move beyond a mere catchphrase and clearly define what we need to achieve and the steps we will take to get there.

With respect to the “Beyond” in “Beyond Finance” in particular, in addition to discussions on the room for growth through deepening our core businesses, we designated areas derived from and adjacent to existing domains as “Next-generation growth drivers” and clarified what these would be like in concrete terms. We also recognize that the discussions around the role Group companies will play in driving these “Next-generation growth drivers” were highly significant when viewing the Group as a whole.

In addition, the Board of Directors will conduct thorough progress reviews of this MMP every six months. We also consider it groundbreaking, in a way not seen before, that we were able to formulate an MMP with a focus on monitoring.

During the discussions on formulating the MMP, we, the Outside Directors, repeatedly posed questions to management, such as “What does Resona Group aspire to be in 10 or 20 years’ time?” and “What specifically do the ‘Next-generation growth drivers’ refer to?” Although the concept of the MMP has been established, without a concrete path forward there is a risk that it could remain nothing more than a plan on paper. I believe that the MMP has become a convincing one, because management is sincerely taking our opinions as Outside Directors into account and engaging in repeated, in-depth discussions. Going forward, I intend to contribute to the achievement of the new MMP by rigorously monitoring progress.

Having now served for three years, this was my first experience of MMP formulation. Throughout the process, the executive side shared with us and engaged in discussions on the business environment, including the return of a world with interest rates, demographic trends, environmental changes driven by FinTech and other developments, and the situation and mentality around collaboration with other companies. I also view positively the fact that, during the MMP formulation process, there was sufficient back-and-forth dialogue between Resona Holdings and the Group banks. Taking into account the individual characteristics of each Group bank, detailed exchanges were conducted in pursuit of the optimal Group-wide approach to the allocation of capital and human resources, and this process was presented to us Outside Directors in a transparent manner. I feel that we were able to make these productive discussions tangible in the form of the MMP.

Given the significant changes in the business environment, including interest rates, I believe the growing number of investors interested in Japanese financial institutions presents an opportunity for the Resona Group. Could you please share the Board of Directors’ assessment of the issues and the sense of urgency based on a medium- to long-term perspective?

At this major turning point brought about by environmental change, I believe the Resona Group must clearly define its own path to success, one that is distinct from both the megabanks and regional banks, and then move decisively to act on it. In the wake of the Resona Shock, we find ourselves in a situation where, for example in terms of human capital, we have not been able to keep pace with securing the specialized human resources we need. We also recognize the issues of making the most of our limited management resources while expanding our business through collaboration with external partners, and translating that into significant results. In order to realize “Beyond Finance” going forward, we must secure a diverse range of human resources and capabilities, and we must consider our response with a sense of urgency.

I think the collaborations with external partners we just discussed will be essential for the Resona Group’s growth over the medium- to long-term. What do you envision as the future for the company 10 or 20 years from now, which you aspire to achieve by integrating power with external partners?

One example of the future we aim to realize through external partnerships is our capital and business alliance with JR West. Going beyond the mere provision of services, and simultaneously growing a high-quality customer base while achieving both the creation of “Next-generation growth drivers” and the growth of our “core businesses”—this is precisely what ‘Beyond Finance’ looks like in practice.

The conceptual structure of “Retail No.1” in our Long-Term Vision describes ‘the Solution Group most trusted by customers and regional communities, walking together toward the future.’ I assess that the group is indeed becoming one that generates numerous solutions through partnerships with external parties and is making steady progress in its efforts.

On a topic related to growth investment, I would like to ask about it from the perspective of investment discipline. In pursuing growth investment and business alliances, I think there is an equally important need for calm and sound judgment. What is your stance on the decision not to proceed with a particular deal and the resulting loss of opportunity?

With regard to investment proposals, there are cases where we receive information at an early stage, before the details of a deal have been finalized, and discuss them at the Board of Directors. In the context of inorganic growth investment, our discussions center on whether a given function is truly indispensable for the Group to possess, and if so, which partners would be most appropriate for such collaboration. In the deliberation of M&A transactions, the management side prepares well-organized materials covering accounting and legal considerations, the capital constraints that would arise from proceeding with an investment, and the extent of the impact on management, and each Director offers a range of perspectives based on that. As a result, there have been cases where we decided not to proceed.

We consider growth investment from the perspective of overcoming Resona Group’s issues and building on its strengths. I feel that sufficient discussion is devoted to each decision before it is adopted.

It is clear that the Board of Directors has engaged in extensive discussion around growth investment. On the other hand, while the total shareholder return ratio target is set at “50% or higher,” could you share your thoughts on the balance between growth investments and shareholder returns?

Resona Group has set a total shareholder return ratio target of “50% or higher,” committing to returning half of its earnings to shareholders and investors. What matters just as much, however, is how the remaining capital is deployed. With an eye to the future, we must advance organic growth investment including investment in human resources and IT systems, as well as inorganic growth investment as the pathway to “Beyond Finance” growth, driving each forward with conviction. The Risk Appetite Statement we formulated two years ago has brought clarity to the distinction between “risks we should take” and “risks we should avoid.” I sense that management’s mindset is evolving as we move into the next growth stage. We aim to build an environment in which the Board of Directors can actively encourage and support appropriate risk-taking.

I believe that, in order to enhance shareholder returns, it is essential to pursue growth investment rigorously so as to steadily grow the profits that serve as the source of those returns. Given its history, Resona Group has at times been cautious about investment. However, I view this MMP as a pivotal moment to fundamentally shift that thinking, and the Board of Directors is committed to lending its full support.

I believe it is important to redefine Materiality when formulating the MMP. Could you tell us what you each see as the key highlights and distinctive features of the MMP formulated through discussions by the Board of Directors and the revised Materiality? And in what ways do you feel the distinctive qualities of Resona are expressed in them?

I believe that the revision of our Materiality this time was driven by the substantive discussions we had—within the framework of “For a Brighter Future” as expressed in Resona Group’s Purpose—for example, about what we need in order to build “a society where people can live in happiness and prosperity,” and about the role Resona should play in society.

From the perspective of what makes Resona unique, I believe it is a key point that we were able to reaffirm and clearly articulate our major role in society, namely, by setting forth our Long-Term Vision, “Retail No.1,” which is to enrich the lives of individuals and foster the growth and development of regional communities and businesses, which, in turn, leads to the well-being of all our stakeholders.

Of the six Materiality areas, the four identified as priority areas reflect the business sectors Resona is focusing on. However, in terms of what defines “the Resona way,” a key feature is the explicit inclusion here of strengthening human capital and establishing governance as its foundation. We believe it will become increasingly important to direct our efforts toward these going forward.

In line with the revision of our Materiality, the “skills expected of Directors” have also been updated. I would like to ask each of you where you believe you can best contribute your strengths.

The most distinctive feature of the revised “skills expected of Directors” is the addition of two new categories: “finance,” which supports growth in core businesses, and “business development,” which drives the creation of next-generation growth drivers. While I am personally expected to contribute in the areas of sustainability and human capital, I believe it is important to view the financial industry and Resona Group from a comparative and objective standpoint, drawing on my management experience in an entirely different sector. I recognize my role as pointing out things that are accepted as common sense internally but are by no means obvious when viewed from an outside perspective.

I understand that my expected role as an Audit Committee member is to assess the financial soundness of the company. Because of my past experience as a lawyer investigating the causes of financial institutions’ management crises, I have a strong interest in areas directly related to the safety and financial soundness of banks. At the same time, in the discussions by the Board of Directors, I intend to speak up proactively with a focus on more fundamental perspectives, such as whether initiatives and business activities are aligned with their original objectives.

I would now like to hear from each of you in your capacity as Chairperson of your respective Committees. First, I would like to turn to Ms. Iwata, Chairperson of the Nominating Committee. This fiscal year, there were changes in the presidents of the three Group banks (Resona Bank, Saitama Resona Bank, and Kansai Mirai Bank), and two Deputy Presidents holding representative authority were newly appointed as Directors of Resona Holdings. Could you tell me the key points regarding this fiscal year’s officer appointments?

We made a comprehensive assessment of several factors—the improving environment surrounding the financial industry, the launch of the new MMP, the fact that the incumbent Presidents of the three Group banks had each served for a substantial period, and the steady development of their successors—and concluded that this was the optimal time to transition the Group bank presidencies. As for the decision to newly appoint two Representative Executive Officer Deputy Presidents at Resona Holdings, we expect Deputy Presidents Isa and Iwadate, both of whom played a leading and central role in formulating the MMP, to leverage their respective strengths and drive the MMP forward with vigor. In addition, we have designated the Group CHRO as a Resona Holdings-dedicated role for the first time, and we believe this will facilitate group-wide discussions on human resource strategy from a broad perspective.

Furthermore, with the aim of further strengthening the Corporate Governance Office, which is responsible for the operation of the Board of Directors, the Nominating Committee, the Compensation Committee, and other committees, we established a structure in which Representative Executive Officer Deputy President serves as the officer in charge. Through this, we aim to further strengthen the integration between corporate governance and the Group strategy.

How does the Board of Directors coordinate with each of the committees?

We operate our Nominating, Compensation, and Audit Committees with a high degree of independence; however, to ensure their activities remain aligned with our overall strategy, we hold regular forums for information and opinion exchange among the Chairperson of the Board of Directors and the three Chairpersons of the Nominating, Compensation, and Audit Committees. By sharing the management issues identified within each committee, we can conduct cross-cutting reviews under the effective involvement of Outside Directors.

I would now like to turn to Ms. Nohara, Compensation Committee Chairperson. Officer compensation plays an extremely important role in realizing our management strategy. Could you explain the basic philosophy and key points of the officer compensation system that was revised in conjunction with the formulation of the MMP?

The overarching philosophy behind the revision is to appropriately evaluate the officers who are driving the management strategy of the new MMP and to have the system function as an incentive that powerfully encourages the execution of initiatives. There are three main points.

First, we explicitly stated in our compensation policy that the system “supports proactive efforts toward improving corporate value over the medium to long term,” making clear our commitment to encouraging bold challenges while keeping excessive risk in check. Second, we revised our evaluation indicators to reflect the KGIs, KPIs, and Materiality KPIs of the new MMP, establishing systems that ensure the progress of our management strategy is properly reflected in compensation. Third, taking into account compensation levels at peer companies and the increasingly significant responsibilities placed on officers, including the President of Resona Holdings, we raised compensation to the appropriate level.

Thank you very much. Finally, I would like to turn to Mr. Tanaka, Chairperson of the Audit Committee. I think that a solid management foundation and a sound corporate culture are critically important to the realization of our strategy. What role does the Audit Committee intend to play in working toward improving corporate value?

For example, we conduct an annual compliance awareness survey and an employee survey targeting all employees across the Group. We have established systems whereby the verbatim comments written in the free-response sections are reported directly to the Audit Committee, and we pick out and discuss the matters of significance found within those employee voices. We intend to ensure that the Audit Committee fulfills its role fully, including from the perspective of maintaining and fostering a sound corporate culture.

I have one more question for the Audit Committee Chairperson. If more resources are allocated to growth investments, there is a risk that the cost of capital could rise. What discussions is the Audit Committee having regarding the governance and control framework for managing such risks?

Rather than focusing on the level of the cost of capital itself, the Audit Committee monitors whether the management decision-making process and risk management framework are functioning appropriately, taking into account the expansion of growth investments and changes in the interest rate environment. Specifically, we are continuously discussing the containment of excessive risk-taking from the perspective of capital efficiency, the status of securing investment returns as a measure of the appropriateness of growth investment, and the adequacy of capital allocation across the entire Group from the perspective of improving corporate value.

We also hold regular exchanges of views with the internal auditing, risk management, finance/planning, and business divisions to ensure the effectiveness of processes, thereby monitoring whether the balance between growth and risk management is maintained and sustainable improvement in corporate value is achieved.

In addition to regular exchanges of views with the Presidents of each Group company, the Audit Committee confirms issues and countermeasures primarily with the CXOs of Resona Holdings, and verifies that the actions required of management are being carried out reliably. Through these processes, the Audit Committee appropriately fulfills its audit function.

Finally, could you share a message for our shareholders and investors?

First, I would like to say, “Please look forward to what Resona will become.” As this MMP and our Materiality show, we have stepped into a new stage of growth. Now that a world with interest rates has returned and the areas we can offer as “Beyond Finance” are expanding, it is an extremely important opportunity for our company. We have also shared concrete winning strategies internally. I am confident that you have every reason to hold high expectations for us. We ask you to watch over our progress, while we fulfill our responsibilities to oversee the management.

Since the previous MMP, Resona Group has certainly begun to change. As the market’s evaluation continues to improve, we would like you to look forward to seeing how much growth we can achieve under this MMP, and whether we can truly execute it and deliver results. On the other hand, periods of strong growth are precisely when an organization’s weaknesses and structural issues become harder to see. This is why we must address issues that have yet to be fully resolved, including reviews of business processes, workstyle reforms, and system security measures. We intend to keep a close eye on these structural issues while continuing to invite the attention of market participants.

Under the theme of “Three Years to Create Our New Ways of Doing Business,” we are planning a wide range of initiatives aimed at the next generation. We would like our shareholders and investors to look forward to these efforts and to continue to offer their ongoing support. It is not enough simply to set ambitious targets. We Outside Directors have a responsibility to rigorously monitor management with respect to how effectiveness will be ensured and how this will translate into improving corporate value. We recognize that, in addition to utilizing data to quantitatively assess the Resona Group’s performance, it is important to closely monitor the progress of individual investments and key projects.

We occupy a unique position that is neither a megabank nor a regional bank. Leveraging that position, we aim to establish systems for delivering superior solutions to the regions where we can best demonstrate our strengths. Looking back, I think that it was precisely the constraints on capital that gave rise to the many ideas we developed. I would also like to draw attention to the distinctly “Resona-like” qualities that have been cultivated by those ideas.

Resona Group holds a truly unique position within the industry, and I believe it is an organization that can readily attract market expectations for new growth. The vision of “what Resona Group should aspire to be” that you have presented, along with the MMP that has been formulated, are both outstanding, and I hold them in very high regard. Going forward, I hope you will monitor progress appropriately and deliver results that meet—and indeed exceed—the expectations of the market. Thank you very much for your time today.