Review of the Previous MMP
The Resona Group positioned the previous MMP (FY2023 through FY2025) as “the first 1,000 days of taking on CX (Corporate Transformation) toward accelerating the realization of Retail No.1,” working on both the strengthening of value creation capabilities and the development of next-generation management platforms.
During this period, structural change advanced globally against a backdrop of heightening geopolitical risks, disruption and reorganization of the supply chain, and uncertainty over prices and interest rates, while the revolution encompassing generative AI and other technologies also accelerated. In Japan, meanwhile, the shift away from the deflationary environment has been progressing, and the country is transitioning to a new economy and society premised on inflation.
Amid these environmental changes, we leveraged the balance sheet strengths we have cultivated through our retail focus to capture with certainty the tailwind from the interest rate environment, expanding net interest income while also making steady progress in strengthening fee income. As a result, Gross operating profit grew substantially. In addition, the delivery of products and functions on a group-wide basis expanded steadily, including the back-office operations and systems integration with Minato Bank in 2025. As a result, net income attributable to owners of parent in the final fiscal year of the MMP came to 258.7 billion yen against a target of 170.0 billion yen, significantly outperforming our initial plan.
At the same time, if we are to continue to achieve sustainable improvement in corporate value, we must press ahead with further structural reforms. We are now expected, more than ever before, to make management decisions unconstrained by existing frameworks, and we recognize that the ability to execute transformation steadily will become all the more important.
Overview of the New MMP
Over the past three years, Resona Group has changed significantly. Carrying forward this momentum of transformation, we have now established our New MMP covering FY2026 through FY2028: “Shift to the Next Stage — Three Years to Create Our New Ways of Doing Business.” “Our New Ways of Doing Business” means further evolving the very foundations of our business — governance, the way we deliver value, and our profit structure — and thereby moving closer to the “next-generation” form to which Resona aspires.
Resona Group Medium-Term Management Plan (FY2026–FY2028)
Growth in core businesses
Strengthening funds flow cycle to continue supporting Japan’s growth and regional vitalization
- Our New Ways of Doing Business
- Balance sheet management focused on realizing a virtuous cycle of value creation backed by a high-quality deposit base
Sustainably expanding solutions to provide support for diversifying issues and financial conduct
- Our New Ways of Doing Business
- Enhancing our ability to resolve issues through solutions derived from co-creation with external partners and other means
Creating next-generation growth drivers
Acquiring new capabilities to continue sustainably providing value amid societal changes
- Our New Ways of Doing Business
- Strengthening our ability to deliver sustainable value by expanding our operations in peripheral and new business fields
Structural reforms of management platforms
Reforming policies, systems and processes to achieve a more sophisticated income and cost structure
- Our New Ways of Doing Business
- Advancing our mode of value creation by taking full advantage of the combination of human capital, generative AI and data
Acceleration of capital circulation to maximize corporate value
Strategic utilization of expanding capital flows
- Our New Ways of Doing Business
- Capital management aimed at accelerating a virtuous cycle of capital creation
Under the New MMP, we aim to realize Our New Ways of Doing Business along each of four axes: “Growth in core businesses,” “Creating next-generation growth drivers,” “Structural reforms of management platforms,” and “Acceleration of capital circulation to maximize corporate value.”
The first axis is “Growth in core businesses.” Anchored by the twin pillars of “strengthening the funds flow cycle” and “sustainable expansion of solutions,” we will strengthen each of these engines in terms of both quality and quantity as we work to realize Our New Ways of Doing Business for the next generation. For the former, Our New Ways of Doing Business will take the form of “balance sheet management focused on realizing a virtuous cycle of value creation backed by a high-quality deposit base.” For the latter, Our New Ways of Doing Business will take the form of “enhancing our ability to resolve issues through solutions derived from co-creation with external partners and other means.” By combining external expertise and functions to spark new chemical reactions, we will not only strengthen traditional flow-based income but also expand recurring income and create new profit opportunities. In doing so, we aim to maximize LTV.
The second axis is “Creating next-generation growth drivers.” With the needs of society and our customers evolving by the day, we have defined Our New Ways of Doing Business here as “strengthening our ability to deliver sustainable value by expanding our operations in peripheral and new business fields.” While securing the functions and capabilities that will be needed well into the future, we aim to remain a financial group that customers continue to choose.
The third axis is “Structural reforms of management platforms.” Here, Our New Ways of Doing Business will take the form of “advancing our mode of value creation by fully leveraging a combination of Human capital × Generative AI × Data.” Beyond improving our OHR, we will transform the customer experience, deliver new value, and press forward toward an overwhelming improvement in productivity.
The fourth axis is “Acceleration of capital circulation to maximize corporate value.” Under the previous MMP, we put forth our commitment to “Transitioning from striving to qualitatively and quantitatively enhance capital to a new phase in which we can fully utilize it,” but those efforts were still in their infancy. Under the New MMP, Our New Ways of Doing Business will take the form of “capital management aimed at accelerating a virtuous cycle of capital creation.” With capital flows expected to expand on the back of profit growth, we will set a clear floor for the total shareholder return ratio at “50% or higher,” while also substantially expanding “growth investment” that serves to improve corporate value over the medium to long term, scaling up both shareholder returns and growth investment.
The KGIs for the New MMP are shown in the chart below. For ROE, one of the financial indicators we emphasize most, we are targeting a level of 12% assuming a policy interest rate of 1%, with approximately 14% in view should the policy interest rate rise to 1.5%. Over the long term, we will aim for even higher levels of ROE through our ongoing commitment to reform.
The targets we have set are by no means easy ones, but we will keep delivering solid results as we aim to become the front runner in next-generation retail financing.
