Financial Highlights for

the Third Quarter of Fiscal Year 2021

January 31, 2022

Outline of Financial Results for the 1-3Q of FY2021

  • Net income attributable to owners of parent : JPY126.5 bn
    • Up JPY29.3 bn, or 30.2%, YoY
      Progress rate against the full year target*1 : 1-3Q 87.2%
  • Actual net operating profit : JPY167.1 bn, Up JPY4.1 bn, or 2.5%, YoY
    Core income [Net interest income from loans and deposits
    • Fee income + Operating expenses] : Up JPY12.8 bn, YoY
    • Gross operating profit : JPY476.1 bn, Up JPY4.2 bn, or 0.9%, YoY
    • Net interest income from domestic loans and deposits : Down JPY0.3 bn, YoY
      Average loan balance : +2.66%, YoY, Loans rate : down by 2bps, YoY

[Excluding loans to the Japanese government and others]

Average loan balance : +2.03%, YoY, Loans rate: down by 2bps, YoY

Both loan balance and loan rate were in line with the plan.

      • Fee income : Up JPY13.4 bn, YoY, Fee income ratio : 31.4%
        Progress rate against the full year plan*2 : 1-3Q 71.3%
        Increased driven by growth in asset formation support business and successon-related income.
      • Net gains on bonds (including futures) : Down JPY19.7 bn, YoY
    • Operating expenses : JPY309.4 bn, increased by JPY0.2 bn, YoY
      Although the non-personnel expenses increased due to the introduction of a new branch system (RB and SR), overall operating expenses remained in the flat zone due to the progress of cost reduction by KMFG.
      ⇒ Consolidated cost income ratio of KMFG ： 70.1% [ (7.6)%, YoY ]
  • Credit related expenses : JPY20.5 bn (cost),

decreased by JPY10.8 bn, YoY

New bankruptcy in specific reserve was at a low level.

Credit costs have posted 46.6% against the full year guidance*3.

  • Acquisition and cancellation of treasury shares
    • Completion of share buyback (Dec. 17, '21 : Approx. JPY10.0 bn)
      • Cancellation of treasury shares was implemented on Jan. 11, '22.
  • Establishment of the Employee Stock Ownership Plan

[ Total amount ： Approx. JPY7.6 bn, released on Jan. 31, '22 ]

FY2021

HD consolidated

YoY change

Progress

1-3Q

rate

(JPY bn)

vs. Target*1

%

(a)

(b)

(c)

(d)

Net income attributable to

(1)

126.5

+29.3

+30.2%

87.2%

owners of parent

EPS (yen)

(2)

52.03

+9.74

+23.0%

BPS (yen)

(3)

1,049.78

+51.46

+5.1%

Gross operating profit

(4)

476.1

+4.2

+0.9%

Net interest income

(5)

317.7

+10.0

NII from loans and deposits*4

(6)

254.9

(0.3)

Fee income

(7)

149.8

+13.4

Fee income ratio

(8)

31.4%

+2.5%

Trust fees

(9)

15.3

+1.2

Fees and commission

(10)

134.5

+12.1

income

Other operating income

(11)

8.5

(19.1)

Net gains on bonds

(12)

(3.1)

(19.7)

(including futures)

Operating expenses (excluding group

(13)

(309.4)

(0.2)

(0.0)%

banks' non-recurring items)

Cost income ratio (OHR)

(14)

64.9%

(0.5)%

Actual net operating profit

(15)

167.1

+4.1

+2.5%

Net gains on stocks

(16)

44.2

+18.8

(including equity derivatives)

Credit related expenses, net

(17)

(20.5)

+10.8

Other gains, net

(18)

(11.5)

+0.6

Net income before income taxes

(19)

179.2

+34.4

+23.8%

and non-controlling interests

Income taxes and other

(20)

(52.3)

(10.0)

Net income attributable to

(21)

(0.3)

+4.9

non-controlling interests

*1.

Full year target of FY2021: JPY145.0 bn *2. Full year plan of FY2021: JPY210.0 bn

*3. Full year plan of FY2021: JPY44.0 bn

*4.

Total of non-consolidated domestic banking accounts of group banks, deposits include NCDs

1

*5.

Negative figures represent items that would reduce net income

Review of the 1-3Qof FY2021

  • Steady progress in income and cost structure reforms Core income [Net interest income from loans and deposits + Fee income + Operating expenses] remained on an increasing trend

(JPY bn)

+ 15.5%,

95.3

YoY

83.4

82.4

+14.1%,

vs FY'19 1-3Q

FY2019

FY2020

FY2021

1-3Q

1-3Q

1-3Q

  • Solid evolution of Kansai Mirai Financial Group

20

income*1]

19.2

[Net

＋84.1%

15

10.4

(JPY bn)

+

259.6%,

10

Apr. '21

19.2

YoY

Contribution to5 HD

Making KMFG as

consolidated income

5.3

a wholly-owned

subsidiary

51.2% 0

FY2020

FY2021

1-3Q

1-3Q

[Fee income*1]

[Operating expenses*1]

35.0

120.0

77.7%

90.0%

Fee income

24.1%

Cost income

70.1%

80.0%

30.0

20.7%

25.0% 100.0

ratio

70.0%

ratio

20.0%

25.0

80.0

60.0%

20.0

15.0%

60.0

50.0%

26.9

40.0%

15.0

82.2

78.3

21.9

10.0%

40.0

20.0%

10.0

+22.8%

30.0%

5.0

5.0%

20.0

(4.8)%

10.0%

0.0

0.0%

0.0

0.0%

FY2020

FY2021

FY2020

FY2021

1‐3Q

1‐3Q

1-3Q

1-3Q

  • Acceleration of SDGs-oriented management

Change in customers' issues

    • Creating new value via Resona's own reform
  • Reforms with two "Xs"
    • Retail Transition Finance
      • Questionnaire implementation about SDGs/SX

SX

(Oct. - Dec. '21) : Approx. 24,000 companies*2

• Made available new loan products with conditions

linked to ESG target accomplishments*3 (Oct. '21-)

  • Sign the "Japan Impact-driven Financing Initiative" (Nov. '21)
  • The progress in the Financial Digital Platform

• Establishment of consortium toward "Multi-channel platform for individual authorization using facial

DX

recognition" (Dec. '21)

• Conclusion of a basic agreement of fund wrap with

Keiyo bank (Dec. '21)

Completed the introduction of a new branch

system at all RB and SR branches (Dec. '21)

Customer needs surfacing under the COVID-19 pandemic Non face-to-face / Cashless

• # of App DL : 4.64 million (+41.9%, YoY) and external group 0.55 million

• # of debit card issued : 2.75 million (+ 20.1%, YoY)

Asset formation support

• Balance of fund wrap*4 : JPY741.7 bn (+49.5%, YoY).

Of which, external group JPY35.9 bn

  • Asset and business succession
    • Succession-relatedincome (succession related trust, real estate, M&A)
      • JPY14.0 bn (+25.0%, YoY)

*1.

KMFG consolidated *2. Number of responding companies (total of group bank)

2

*3.

''SX Framework Loan'',''TryNow'' etc. *4. Including corporation and external group

Breakdown of Financial Results for the 1-3Q of FY2021

Resona Holdings

Total of group banks

Difference

(JPY bn)

(Consolidated)

Resona

Saitama

Total of

group

Resona

YoY

YoY

Bank

YoY

Bank

YoY

banks under

YoY

KMFG

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(a)-(c)

Gross operating profit

(1)

476.1

+4.2

433.3

+3.8

242.7

(3.4)

86.0

+1.1

104.5

+6.1

42.7

Net interest income

(2)

317.7

+10.0

312.3

+9.9

167.9

+7.3

64.7

+1.8

79.7

+0.6

5.4

NII from domestic loans and deposits

(3)

254.9

(0.3)

131.7

+1.6

51.6

(1.1)

71.5

(0.8)

Net gains on cancellation of investment trusts

(4)

1.0

(1.1)

1.0

(0.6)

*1

－

+1.9

0.6

(0.7)

0.4

(1.8)

0.0

Fee income

(5)

149.8

+13.4

113.4

+12.8

72.1

+6.6

19.9

+1.0

21.3

+5.1

36.4

Fee income ratio

(6)

31.4%

+2.5%

26.1%

+2.7%

29.7%

+3.1%

23.1%

+0.9%

20.4%

+3.9%

Trust fees

(7)

15.3

+1.2

15.4

+1.3

15.3

+1.3

0.0

+0.0

0.0

+0.0

(0.0)

Fees and commission income

(8)

134.5

+12.1

98.0

+11.5

56.7

+5.3

19.9

+1.0

21.3

+5.1

36.4

Other operating income

(9)

8.5

(19.1)

7.5

(18.9)

2.7

(17.5)

1.4

(1.7)

3.4

+0.2

0.9

Net gains on bonds (including futures)

(10)

(3.1)

(19.7)

(3.1)

(19.6)

*1

(5.3)

(18.4)

0.3

(1.7)

1.8

+0.5

0.0

Operating expenses

(11)

(309.4)

(0.2)

(289.9)

+0.8

(157.9)

(2.5)

(56.4)

(0.7)

*2

(75.4)

+4.1

(19.5)

(excluding group banks' non-recurring items)

Cost income ratio (OHR)

(12)

64.9%

(0.5)%

66.8%

(0.7)%

65.0%

+1.9%

65.6%

+0.0%

72.2%

(8.7)%

Actual net operating profit

(13)

167.1

+4.1

143.4

+4.6

84.8

(5.9)

29.6

+0.3

29.0

+10.2

23.6

Core net operating profit

*3

(14)

145.0

+21.2

90.3

+8.7

27.9

+0.9

26.7

+11.4

(excluding gains on cancellation of investment trusts)

Net gains on stocks (including equity derivatives)

(15)

44.2

+18.8

44.0

+16.7

39.6

+25.2

3.4

(7.3)

1.0

(1.1)

0.1

Credit related expenses, net

(16)

(20.5)

+10.8

(20.2)

+6.6

(15.7)

+3.1

(0.4)

+1.5

(4.1)

+2.0

(0.2)

Other gains, net

(17)

(11.5)

+0.6

(10.4)

+0.4

(5.3)

+1.6

(2.0)

+0.5

(3.0)

(1.7)

(1.1)

Net income before income taxes

(18)

179.2

+34.4

156.8

+28.5

103.3

+23.9

30.6

(4.9)

22.8

+9.4

22.4

Income taxes and other

(19)

(52.3)

(10.0)

(45.5)

(8.3)

(29.5)

(6.8)

(8.9)

+1.4

(6.9)

(2.9)

Net income attributable to non-controlling interests

(20)

(0.3)

+4.9

Net income

(21)

126.5

+29.3

111.3

+20.2

73.7

+17.0

21.6

(3.4)

15.9

+6.5

(attributable to owners of parent)

*1. Net gains on cancellation of investment trusts are posted in the net gains on bonds since net of the gains and dividends from investment trusts become negative

(Net gains on cancellation of investment trusts: JPY(4.8) bn, dividends from investment trusts: +JPY2.9 bn →

net amount: JPY(1.9) bn)

*2. Exclude goodwill amortization by KMB, JPY(0.5) bn, related to acquisition of former Biwako Bank

3

*3. Actual net operating profit - Net gains on cancellation of investment trusts - Net gains on bonds

Factors for the Changes in Net Income Attributable to

HD

Owners of Parent (YoY Comparison)

Consolidated

（JPY bn）

97.1

Of

Which,

Actual net operating profit +4.1

Gross operating profit +4.2

Net gains

on stocks

Fees and

commission

Other GOP,

(including

income

net

Operating

equity

NII from

+13.4

derivatives)

(19.1)

expenses

domestic loans

Other NII

(0.2)

+18.8

and deposits

+10.3

(0.3)

Volume factor +6.5

Net gains on bonds

(including futures)

(19.7)

Rate factor

(6.8)

Yen bonds

(5.3)

Foreign bonds

(14.3)

Dividends from stock

+1.5

Other

Credit- items,

related net

expenses, (4.3) net

+10.8

(Act.)

'20/12 (31.3) '21/12 (20.5)

+29.3,

YoY

126.5

Of

Which,

KMFG

19.2*2

KMFG

5.3*1

Investment trust (sales

Personnel expenses

+2.3

ETFs and other

+2.2

commission and trust fees)

+4.3

Policy-oriented stocks

+16.5

Non-personnel expenses (2.2)

Fund wrap

+2.0

(Act.)

Trust related

+1.8

'20/12

23.7

Corporate solution

+1.2

'21/12

40.3

Real estate

+1.7

FY2020

FY2021

1-3Q

1-3Q

*1. KMFG consolidated net income x 51.2% *2. KMFG consolidated net income x 100%

4

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Resona Holdings Inc. published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 07:27:57 UTC.