Resona Holdings, Inc.

Business Details

Business activities centered mainly on consulting services for individual customers, including personal loans (housing loans, apartment/mansion loans, etc.), asset management (investment trusts, insurance, public bonds, etc.), and asset succession (trust, real estate, etc.). Leverages the individual customer base centered on the Tokyo metropolitan area and Kansai region through four banks: Resona Bank, Saitama Resona Bank, Kansai Mirai Bank, and Minato Bank. Also includes figures from consolidated subsidiaries such as loan guarantee companies.

Recent Overview

Gross operating profit increased significantly by ¥54,385 million year on year owing to rising interest rates and AUM expansion

For the full fiscal year FY2026 (ending March 2026), gross operating profit in the Individual Banking Division was ¥410,576 million (up ¥54,385 million, +15.3% year on year), and real net operating profit was ¥173,230 million (up ¥44,777 million, +34.9% year on year), representing substantial earnings growth. In addition to an improvement in domestic deposit and loan yields (combined bank loan yield of 1.16%, up 0.27 percentage points year on year) driven by the Bank of Japan's additional rate hikes, growth in fee income from the expansion of investment trust balances (¥3,596.2 billion, up ¥423.9 billion from the previous fiscal year-end) and insurance balances (¥3,345.9 billion, up ¥193.8 billion from the previous fiscal year-end) contributed. Although credit costs increased to ¥1,612 million in expense (versus ¥20 million in the previous fiscal year), net operating profit after credit costs achieved substantial growth of ¥171,617 million, up ¥43,184 million year on year.

Key Products

Growth Drivers

• Improvement in domestic deposit and loan yields (combined bank loan yield of 1.16%, up 0.27 percentage points year on year) driven by the Bank of Japan's additional rate hikes, and expansion of net interest income
• Increase in fee income from expansion of personal investment product balances such as investment trusts and insurance (investment trusts at ¥3,596.2 billion, up ¥423.9 billion from the previous fiscal year-end), achieving a record high for the fifth consecutive period
• Continued expansion of housing loan balances (combined bank balance of ¥17,652.6 billion, up ¥526.8 billion from the previous fiscal year-end) and overall increase in consumer loans
• Growing individual demand for asset management and asset succession amid rising wages and heightened awareness of asset formation
• Strengthening of the earnings base through expansion of trust assets under management (¥30,902,845 million, up ¥2,563,534 million from the previous fiscal year-end) and increased trust fees
• Expansion of settlement-related services and deepening of customer touchpoints leveraging digital channels

Risks

• Risk of increased repayment burden for variable-rate borrowers of housing loans, etc., and deterioration in credit costs amid rising interest rates (credit costs for FY2026 (ending March 2026) increased significantly year on year to ¥1,612 million)
• Risk of deteriorating personal consumption and asset management sentiment amid heightened uncertainty in the global economy due to U.S. Trump administration trade policy and additional tariffs
• Stagnation of real wages and decline in individual purchasing power and capacity for asset formation due to price inflation centered on fresh food
• Long-term structural mismatch between revenue and cost due to the shrinking individual customer base from the declining birthrate, aging population, and population decline, combined with the high-cost structure inherent in the retail-focused model
• Increased information security risk and rising costs related to strengthening AML/CFT frameworks accompanying the expansion of digital channels
• Risk of profit pressure from increased expenses (rising personnel and non-personnel expenses) (combined bank expenses increased by ¥18,817 million year on year)