Summary of Operating Results for the 1-3Q Period of FY2012 (9 Months from April 1 to December 31, 2012)

Transcription

1 January 31, 213 The forwardlooking statements contained in this presentation may be subject to material change due to the following factors. These factors may include changes in the level of stock price in Japan, any development and change related to the government s policies, laws, business practices and their interpretation, emergence of new corporate bankruptcies, changes in the economic environment in Japan and abroad and any other factors which are beyond control of the Resona Group. These forwardlooking statements are not intended to provide any guarantees of the Group's future performance. Please also note that the actual performance may differ from these statements.

2 Summary of Operating Results for the Period of FY212 (9 Months from April 1 to December 31, 212) Operating results (Total of Group Banks) (A) FY211 FY212 Change Rate of Progress *3 Comments Gross operating profit Net interest Fees and commission *1 Other (net) Operating expenses Actual net operating profit *2 Net gain/(loss) on stocks Credit expenses, net Pretax bn 342. bn 68.6 bn bn bn 71.5 bn 5. bn (248.2) bn (15.) bn 22.7 bn bn (3.7)% (4.8)% +4.2% (66.8)% (1.4)% 18.9 bn (6.8)% +1.3% 75.% Net gains on bonds 2.2 bn 27.1 bn +34.2% 15.1 bn (251.7) bn bn (6.1) bn.5 bn bn 73.4% 77.3% 97.3% Net bn 27.6 bn +4.4% 96.5% Net interest decreased by Y16.7 bn YoY, mainly due to a decrease in from loans and deposits attributable to a contraction of loantodeposit spread Fee and commission increased by Y2.9 bn, YoY Investment trust sales: +Y.6 bn Insurance product sale: +Y1. bn Decrease in HLrelated expenses: +1.6 bn Net gains on bonds (including hedges) was Y23.6 bn, up Y1.8 bn YoY Other (net) decreased in the absence of oneoff gain of Y13.4 bn posted in the previous fiscal year relating to special dividends on trust beneficiary right. Sustained efforts to curtail operating expenses Actual net operating profit decreased by Y13.3 bn YoY. Net gain/(loss) on stocks improved by Y2.7 bn compared with 1H of FY212. Subsidiary banks posted a negative credit expense of Y22.7 bn primarily owing to a gain from reversal of general reserve for possible loan losses Pretax Income increased by Y2.4bn Net increased by Y59.8bn YoY, supported by a reduction in tax charge due to a change in applicable DTA recoverability category. Operating results (Resona HD Consolidated) (B) FY 211 FY 212 Change Rate of Progress *3 Comments Net Income Difference (B) (A) bn 9.7 bn bn 21.5 bn +45.4% 99.6% +12.3% Posted Y229.2bn as consolidated net, up Y71.5 bn YoY Net of subsidiaries other than 3 banks expanded primarily due to a reduction in their credit expenses. *1. Fees and commission plus trust fees *2. Net operating profit before transfer to general reserve for possible loan losses and expenses related to NPL disposal in the trust account *3. Rate of progress visàvis the fullyear guidance for FY212 announced in November 212. *4. Figures in parentheses represent items that would reduce net. 1

3 Consolidated Net Income for FY212 Compared with FY211 Y71.5 bn increase in consolidated before taxes and minority interests Y5.8 increase in before taxes and minority interests (Billions of Yen) (13.4) (4.5) +5.9 (8.7) Group banks (8.9) Impairment loss (15.3) FY211 (2.) FY212 (17.3) Investment in ETF Group banks FY FY Other subsidiaries +3.9 (Mostly HL guarantee subsidiaries) FY211 (7.7) FY212 (3.7) Effect of the change in applicable DTA recoverability categories +9.1 Booked additional DTA accompanying the shift in applicable DTA recoverability category from No.4 Provisory to No.2 Resumption of corporate tax payment on a cash basis (29.5) Tax loss carried forward expired by March 212 and the Group is expected to resume corporate tax payment on a cash basis from fiscal (+45.4%) FY211 Net interim Net Income 税金 Special Other Operating 株式 Net 与信 Net その他損益 Other FY212 taxes dividends gross expenses gains credit (net) on trust and operating on 費用等 beneficiary cost 業務粗利益経費関係損益費用総額 Net interim other profit Net right stocks items Gross operating profit FY212 (forecast) (Original foredast) 2

4 Gross Operating Profits for FY212 Compared with FY211 (Total of Group Banks) Topline decreased by Y16.9 bn mainly due to drop of special dividend on trust beneficiary right FY211 Topline Loans and deposits*1 (14.2) Volume factor: +.1 Rate factor: (14.3) Net interest Other items (net) (2.5) Net Interest Income: (16.7) FY'11 FY' Loans and deposits * Other items (net) Financial product sale +1.7 Inv. trust: +.6 Insurance: +1. Real estate (.5) Pension/ securities trusts (1.) FY'11 Other +2.7 Loanrelated expenses: +1.6 Fees and Commission Income *2 : +2.9 Fees and commission *2 Financial product sale Real estate (excluding equity investments) Pension and securities trusts FY' Other items (net) Net gains on bonds +6.9 Net gains on bonds Other +3.3 Net gains on bonds (including FX) +1.8 Special dividend on trust beneficiary right (13.4) Net Gains on Bonds and Other (Net): (3.1) Net gains on bonds and other (net) FY'11 FY' Other items (net) Special dividends on trust beneficiary right 13.4 (Billions of Yen) (16.9) FY212 Topline *1. Domestic operations (Deposits include NCDs) *2. Fees and commission plus trust fees 3

5 Trend of Loan and Deposit (Total of Group Banks) Trend of loan and deposit rates and spread (Domestic Banking Account) Loan rate (left scale) Loantodeposit spread (left scale) Deposit rate (right scale).9%.8% (Ytn) FY211 FY212 Change 2.% 1.5% 1.83% 1.72% 1.63% 1.71% 1.64% 1.56% 1.85% 1.83% 1.82% 1.8% 1.75% 1.72% 1.71% 1.69% 1.66% 1.62% 1.6% 1.72% 1.71% 1.71% 1.7% 1.66% 1.63% 1.63% 1.61% 1.59% 1.55% 1.54%.7%.6%.5%.4%.3% Loans Avg.Bal Yield 1.73% 1.63% (.1)% Deposits Avg.Bal %.8%.6%.13%.11%.1%.9%.9%.9%.8%.7%.7%.6%.6%.2%.1% (Including NCDs) Cost.8%.6% (.1)% 1.% (Act) (Act) (Plan) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q.% Loantodeposit spread 1.64% 1.56% (.8)% FY21FY211FY212 FY21 FY211 FY212 Trend of termend deposit balance Trend of termend loan balance (Y tn) 3 2 Individual deposits Corporate deposits Other (Y3 tn) 2 Loans to consumers Loans to SMEs Other '1/9 '11/3 '11/9 '12/3 '12/9 '12/12 '1/9 '11/3 '11/9 '12/3 '12/9 '12/12 * Include the loan extended to Resona Holdings (Y.27 trillion as of 211/3 and 211/9, Y.24 trillion as of 212/3 and 212/9, Y.19 trillion as of 212/12) 4

6 Trend of Housing Loan Business (Total of Group Banks) (Ytn) Trend of Housing Loan Origination Flat 35 Apartment loan Residential housing loan H 2H 1H 2H 1H 2H 1H 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY29 FY21 FY211 FY212 FY211 FY212 Trend of Housing Loan Balance Residential housing loan Apartment loan (Ytn) Flat 35 Housing loan ratio(right scale) % 46.8% 46.3% 46.7% 47.% 47.3% 48.2% 5% % 4% % 3% 25% 2% % 1% 5% % '1/3 '1/9 '11/3 '11/9 '12/3 '12/9 '12/12 Indices to measure soundness Ratio of subrogation payment* 1 Approx..3.4% Net loss ratio *2 Approx..1.2% *1. Rate of subrogation repayment by loan guarantee subsidiaries *2. Subrogation ratio x (1 rate of recovery after subrogation) 5

7 Trend of Investment Product Sale Business (Total of Group Banks) Investment Trusts Insurance 2 1 (Y bn) (Y bn) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 29 FY 21 FY211 FY'12 FY 29 FY 21 FY211 FY212 Balance of Investment Products sold to Individual *1 (Ytn) % 15.6% 15.6% 15.9% 15.2% 15.8% 15.3% 15.7% 15.5% 15.6% 14.9% 14.8% 15.1% 15.3% 15.6% Investment trusts Insurance Public bond Foreign currency deposit Investment product ratio*2(right scale) Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. FY 29 FY 21 FY 211 FY212 15% 1% 5% * Investment product ratio = balance of investment products sold / balance of investment products sold and deposits held by individuals 6

8 Credit Costs and Securities (Total of Group Banks) Total of group banks (A) (Y bn) FY29 FY21 FY211 FY212 1H 2H 1H 2H 1H 2H 1H 3Q General reserve (9.5) (5.8) Specific reserve and other items New bankruptcy, downward migration (41.7) (49.5) (29.6) (12.8) (21.5) (32.2) (9.1) (1.7) (56.3) (59.2) (39.1) (27.9) (27.4) (28.3) (28.2) (8.) Other (3.9) Net credit cost RHD consolidated (B) Net credit cost Trend of credit costs (51.3) (3.7) (18.1) (18.6).4 (4.8) Difference (B) (A) (17.4) (15.1) (14.1) (1.6) (7.1) (2.1) (5.9) 2.1 (68.7) (45.8) (32.2) (29.2) (6.7) (7.) Responses to obligors who already formulated or are preparing a feasible and drastic turnaround plan Specialized division examines and approves such a plan Monitor progress of the plan every three months and determine an obligor category Obligors who already formulated a turnaround plan Obligors who are preparing a turnaround plan Obligor classification Other watch Criteria for providing loan loss reserves In reference to: 1) actual loan loss ratio observed 2) time period of turnaround plan Special attention More rigorous reserve policy adopted in Q3 FY212 Coverage ratio Approx. 5% Approx. 6% Reserve based on the same criteria as applied to special attention obligors Availableforsale securities Securities portfolio Net unrealized gain as of Dec. 31, 212 : Y141.bn Stocks : Impairment loss Y17.3bn, improvement of Y.3bn from 1H of FY212 JGB : Average duration 2.5 years, BPV Y1.62bn [Total of three banks] Balance of floatingrate JGBs : Y232. Availableforsale securities *1 Stocks Bonds (Y bn) Mar.'1 Mar.'11 Mar.'12 Sep.'12 Dec.'12 7, ,15.6 9, , , ,55. 7, ,45.9 7,548. 7,354.9 JGBs 5, , , ,44.3 6,151.1 Average duration (years) BPV (1.19) (1.35) (1.81) (1.68) (1.62) Local government bonds Corporate bonds 1,153. 1, Other Foreign securities Unrealized gains/(losses) Bonds held to maturity *2 Unrealized gains/(losses) *1. Acquisition cost basis *2. Balance sheet amount basis ,87.2 1, ,6.6 2, ,