Resona (8308) Q1 2024 earnings summary

Executive summary

• Net income attributable to owners of parent rose 56.4% year-over-year to JPY55.3 bn, achieving 33.5% of the full-year target.

• Gross operating profit increased 13.0% year-over-year to JPY174.9 bn, with core net operating profit up 17.3% to JPY65.5 bn.

• Growth was driven by higher net interest income, fee income, and gains on policy-oriented stock sales.

Financial highlights

• Net income attributable to owners of parent: JPY55.3 bn, up JPY19.9 bn year-over-year.

• Gross operating profit: JPY174.9 bn, up JPY20.1 bn year-over-year.

• Core net operating profit: JPY65.5 bn, up JPY9.6 bn year-over-year.

• Fee income reached a record high for 1Q at JPY59.6 bn, up 11.2% year-over-year.

• Credit costs improved by JPY6.8 bn year-over-year, resulting in a small gain.

Outlook and guidance

• Full-year net income target is JPY165.0 bn, with 1Q progress at 33.5%.

• Full-year dividend forecast is 23.0 yen per share, up 1.0 yen year-over-year.

• Corporate loan balance expected to increase JPY2.5 tn over two years, nearly meeting the three-year target ahead of schedule.