Resona Holdings (8308): FY2025 Results Summary — New Medium-Term Plan Targets 12% ROE by FY2028

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Resona Holdings, Inc. held its FY2025 Investor Relations Meeting on May 19, 2026, reporting FY2025 (fiscal year ended March 31, 2026) results and unveiling its new Medium-Term Management Plan (MMP) for FY2026-FY2028, titled “Shift to the Next Stage — Three Years to Create Our New Ways of Doing Business.” For FY2025, net income attributable to owners of parent came to JPY258.7 bn, ROE (TSE standard) reached 9.2%, and the cost-income ratio (OHR) improved to 57.5%. Under the new MMP, the Group targets ROE of 12%, gross operating profit of JPY1,000.0 bn, and an OHR in the 40% range by FY2028.

Consolidated Results (Full-Year Actual)

The table below compares FY2022 (the start of the previous MMP), FY2025 actual results (the final year of the previous MMP), and FY2028 targets under the new MMP. Net income attributable to owners of parent rose from JPY160.4 bn in FY2022 to JPY258.7 bn in FY2025, and the new MMP targets JPY390.0 bn by FY2028. As of the end of March 2026 (fiscal year-end), consolidated total assets stood at JPY76.2 tn, comprising loans of JPY47.6 tn and securities of JPY11.4 tn, funded mainly by deposits of JPY63.7 tn, with total equity of JPY2.9 tn.

Item	FY2022	FY2025 (Actual)	FY2028 (MMP Target)
ROE (TSE standard)	6.5%	9.2%	12%
OHR (Cost income ratio)	67.4%	57.5%	40% level
Gross operating profit (JPY bn)	600.0	808.8	1,000.0
Net income attributable to owners of parent (JPY bn)	160.4	258.7	390.0
Total shareholder return ratio	40.6%	50.5%	50% or higher
CET1 ratio*1	10%	10.0%	10% level

Segment Results

Resona Holdings does not disclose earnings by a conventional retail/wholesale segment split. Instead, the FY2025 materials present the consolidated balance-sheet composition by loan and deposit category. As of the end of March 2026 (total of group banks), housing loans and SME loans each accounted for 36.8% of the loan balance, with large companies and other loans at 26.4%; personal deposits made up 61.8% of deposits, versus 31.6% for corporate deposits.

Category	Metric	Value (as of Mar. 31, 2026)
Consolidated (HD)	Total assets (JPY tn)	76.2
Consolidated (HD)	Loans (JPY tn)	47.6
Consolidated (HD)	Deposits (JPY tn)	63.7
Consolidated (HD)	Securities (JPY tn)	11.4
Consolidated (HD)	Total equity (JPY tn)	2.9
Large companies and other	Share of loan balance (total of group banks)	26.4%
SMEs	Share of loan balance (total of group banks)	36.8%
Housing loans	Share of loan balance (total of group banks)	36.8%
Personal deposits	Share of deposit balance (total of group banks)	61.8%
Corporate deposits	Share of deposit balance (total of group banks)	31.6%

Fee income, corporate loans, housing loans, AUM and succession-related businesses are positioned as core growth drivers under the new MMP. Total fee income rose from JPY208.6 bn in FY2022 to JPY230.5 bn in FY2025, targeted at JPY232.0 bn in FY2026 and JPY253.0 bn by FY2028 (MMP). Corporate loan balances (total of group banks) increased to JPY26.9 tn as of March 2026 and are targeted to reach JPY31.1 tn (+15.5%) by March 2029 under the MMP. AUM business income grew from JPY51.0 bn (FY2022) to JPY58.8 bn (FY2025), targeted at JPY65.0 bn by FY2028 (MMP), with the ratio of recurring income rising from 73% (FY2025) to a targeted 78% (FY2028 MMP). Succession-related income rose to JPY17.7 bn as of March 2026, targeted to reach JPY33.6 bn by March 2029 (MMP).

Business	Metric	FY2025 (Actual) / Mar. 2026	FY2026 (Target)	FY2028 (MMP) / Mar. 2029
Fee income (total)	JPY bn	230.5	232.0	253.0
Corporate loans	Loan balance, JPY tn (total of group banks)	26.9	–	31.1 (+15.5%)
Housing loans	Portfolio yield / new origination rate	1.15%	–	1.58%
AUM business	AUM income, JPY bn	58.8	–	65.0
Succession business	Succession-related income, JPY bn	17.7	–	33.6

FY2026 Forecast

For FY2026, Resona Holdings forecasts net income attributable to owners of parent of JPY310.0 bn, up from JPY258.7 bn in FY2025. FY2025 results included an additional deferred tax asset recognition of approximately JPY300.0 bn.

Item	FY2026 (Forecast)	FY2025 (Actual)
Net income attributable to owners of parent (JPY bn)	310.0	258.7
DPS, annual (yen)	37	29

Shareholder Returns

The FY2025 total shareholder return ratio came to 50.5%, comprising dividends of 25.5% and share buybacks of 25.0%. For FY2026, Resona forecasts an annual DPS of 37 yen, up 8 yen year on year from FY2025’s 29 yen, and has announced a share buyback of up to JPY35.0 bn (up to 25,000,000 shares, or 1.11% of total ordinary shares issued excluding treasury shares), to be executed from May 13, 2026 to August 7, 2026. Under the new MMP, the Group targets a total shareholder return ratio of 50% or higher and has revised its FY2029 DOE (Dividend on Equity) target upward, from approximately 3% to approximately 3.5% (revised in May 2026). The CET1 ratio stood at 10.08% as of March 31, 2026 (based on the full enforcement of the finalized Basel 3 regulations under the international standard, excluding net unrealized gains on available-for-sale securities), and the Group aims to maintain the CET1 ratio in the 10% range while expanding growth investment and shareholder returns.

Medium-Term Plan / Topics

The new MMP, “Shift to the Next Stage — Three Years to Create Our New Ways of Doing Business,” covers FY2026-FY2028 and is built around four pillars: (1) growth in core businesses, (2) creating next-generation growth drivers, (3) structural reforms of management platforms, and (4) acceleration of capital circulation to maximize corporate value. Under a provisional scenario assuming a 1.5% policy interest rate (versus the MMP’s 1.0% assumption), Resona estimates ROE could reach 14% once the impact of interest rate hikes has fully materialized, above the MMP target of 12% at a 1.0% policy rate.

As part of “Our New Ways of Doing Business,” Resona is expanding collaboration with equity-method affiliate Digital Garage (DG), in which its shareholding ratio stood at 30.9% following DG’s transition to an equity-method affiliate in September 2025; initiatives include joint development of settlement products and a planned “DG Bank (tentative)” BaaS project targeted for release by the end of FY2026. Resona also announced a capital and business alliance with JR-West (effective May 1, 2026) to develop “WESTER Mirai Bank (tentative),” a BaaS and settlement model for the Kansai region, and a business collaboration with Daiichi Life Group and JCB in the individual customer field (effective May 18, 2026). The Group plans to relaunch its “Resona Plus” service brand in late September 2026.

Under the structural reform pillar, Resona plans to expand IT-related investment from JPY120.0 bn under the previous MMP to JPY140.0 bn under the new MMP, supporting frontline, middle- and back-office reforms and workstyle innovation utilizing generative AI, with the aim of lowering OHR to the 40% range by FY2028.

On policy-oriented (cross-held) stock reduction, Resona aims to reduce the book value of such holdings by more than two-thirds by the end of March 2030 compared with the end of March 2024, targeting a fair-value-based ratio to consolidated net assets of around 10%. In FY2025, the Group disposed of listed stocks with an acquisition cost of JPY32.6 bn, realizing a net gain on sale of JPY106.5 bn on an HD-consolidated basis.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.