ENVALITH
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Resona Holdings, Inc.

8308・Prime Market・Banks

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株式会社りそなホールディングス logo
Resona Holdings, Inc.8308

Business

Resona Holdings is a holding company overseeing Resona Bank, Saitama Resona Bank, Kansai Mirai Bank, Minato Bank, and others, comprising 30 domestic consolidated subsidiaries, 3 overseas consolidated subsidiaries, and 6 equity-method affiliates. Its primary customers are individuals and small-to-medium enterprises in the Greater Tokyo and Kansai regions, and it provides a wide range of financial services including deposits, loans, trusts, asset management, asset succession, settlement, credit cards, and leasing. With "No. 1 in Retail" as its long-term vision, the group aims to become a solutions-oriented group centered on individuals' asset formation and succession needs and corporations' business succession and funding needs.

Business Model

The company's foundation is traditional deposit-lending interest margin income, generated by accepting deposits from individual and corporate customers and deploying them into housing loans, lending to small and medium-sized enterprises, and securities investment. In addition, the company has built a diversified earnings structure that is less susceptible to the interest rate environment by accumulating fee income from investment trust and insurance sales, trust fees, Business Succession & Asset Succession Consulting, and settlement-related operations. Fee income reached a record high of ¥230.5 billion for the fifth consecutive fiscal period.

Company Strengths

The three banks—Resona Bank, Saitama Resona Bank, and Kansai Mirai Bank—jointly conduct trust operations, with trust assets under management reaching ¥30,902,845 million (up ¥2,563,534 million from the previous fiscal year-end). With a personal investment trust balance of ¥3,596.2 billion and a housing loan balance of ¥17,652.6 billion (up ¥526.8 billion from the previous fiscal year-end), the combination of a customer base built through retail specialization and trust functions constitutes a unique strength that competitors cannot easily replicate in a short period.

Group-wide fee income has renewed its record high for five consecutive periods, reaching ¥230.5 billion in FY2026 (ending March 2026). Growth in personal investment product balances such as investment trusts and insurance, steady progress in settlement-related business, and the strengthening of specialist personnel in Business Succession & Asset Succession Consulting are supporting revenue diversification, functioning as a stable revenue base that is not dependent on the interest rate environment.

The consolidated capital adequacy ratio (domestic standard) is maintained at 12.54%, and while the loan balance has expanded to ¥47,633,781 million (up more than ¥3,100,100 million from the previous fiscal year-end), credit costs in the Individual Banking Division have been kept low at ¥-1,612 million. The high-quality balance sheet cultivated through a history of retail specialization is a source of competitiveness that enables sustained fund supply even in an environment of rising interest rates and inflation.

ENVALITH's Perspective

In FY2026 (ending March 2026), against the backdrop of the Bank of Japan's additional rate hikes, the combined domestic deposit-and-loan yield spread of the group banks rose by 0.27 percentage points year on year, driving a substantial expansion in net interest income. The net income target for FY2027 (ending March 2027) is set at ¥310,000 million (+19.8% year on year), reflecting a high growth rate, and the combined core net business income target of ¥376,500 million for the four group banks is also an ambitious level. As long as the external environment continues to see interest rates remain elevated, there remains substantial room for further expansion of net interest income.

The Markets Division's consolidated core net business income remained deeply in the red at ¥(88,003) million, with the impact of revenue transfer due to the change in the internal transfer pricing rate (¥(61,796) million) weighing on overall earnings. In addition, equity in earnings of affiliates deteriorated sharply to ¥(44,832) million (from +¥431 million in the prior period), contributing to the widening loss in the "Other" segment. Some view the upside potential for consolidated earnings as limited unless these structural issues are resolved.

The capital investment by JR West in Kansai Mirai Bank announced in May 2026 (total acquisition amount of ¥90.0 billion, for 20% of issued shares) represents a strategic alliance aimed at revitalizing the regional economy and enhancing corporate value, and is expected to result in a gain on sale of shares of affiliated companies of approximately ¥40.0 billion in the non-consolidated financial results for FY2027 (ending March 2027) (eliminated on a consolidated basis). Meanwhile, on the shareholder return front, the annual dividend for FY2027 (ending March 2027) has been raised to ¥37 (an increase of ¥8 year on year), and a share buyback framework of ¥35.0 billion has also been established. Clear targets of a total payout ratio of 50% or more and a DOE of approximately 3.5% for FY2030 (ending March 2030) are drawing investor attention.

Growth Strategy

Toward achieving No.1 status in retail, the company is advancing on four pillars: rising interest rates, asset formation, strategic alliances, and shareholder returns.

Capturing the phase of additional rate hikes by the Bank of Japan, the company is achieving both an increase in loan balances (combined bank ending balance of ¥47,920.1 billion) and improved yields (combined bank loan yield of 1.16%, up 0.27 percentage points year on year), continuing to expand net interest income. For FY2027 (ending March 2027), the company targets combined real business net profit of ¥376,500 million for the four group banks.

Fee income, combining trust fees and fees and commissions, reached ¥203,526 million (consolidated) in FY2026 (ending March 2026), marking a record high for the 5th consecutive period. The company aims for further expansion through deepening investment trusts, insurance, and asset succession consulting, as well as expanding settlement-related services.

The company continues to steadily advance the Sale of Policy-Held Shares, with combined bank gains/losses related to stocks expanding to ¥120,455 million in FY2026 (ending March 2026) (up ¥31,645 million year on year). The combined bank holding balance on an acquisition cost basis has been steadily reduced to ¥194.4 billion (down ¥32.6 billion from the previous period-end).

Through the capital and business alliance concluded in May 2026, JR West is scheduled to acquire 20% of Kansai Mirai Bank shares (total acquisition amount of ¥90.0 billion). Kansai Mirai Bank is expected to become an equity-method affiliate of JR West, aiming for regional economic revitalization and further enhancement of corporate value. The share transfer is scheduled to take place during FY2027 (ending March 2027).

The total payout ratio for FY2026 (ending March 2026) achieved 50.5%. For FY2027 (ending March 2027), an annual dividend of ¥37 (an increase of ¥8 year on year) and a share buyback allocation of ¥35.0 billion have been set. In the medium-term management plan (FY2027 through FY2029, ending March 2027 to March 2029), the company has clearly established a total payout ratio of 50% or more as the floor, and raised the DOE target for FY2030 (ending March 2030) to approximately 3.5%.

Last updated: July 19, 2026