Resona (8308) Q2 2025 earnings summary

Executive summary

• Net income attributable to owners for 1H FY2024 was JPY 114.2 billion, up 38.4%–38.5% year-on-year, achieving 69.2% of the full-year target and prompting an upward revision of the annual target to JPY 175 billion, or JPY 190 billion excluding one-off Minato Bank integration costs.

• Core net operating profit rose to JPY 130.2 billion, up JPY 13.2 billion or 11.2% year-on-year.

• Ordinary profit increased 41.1% year-on-year to JPY 161.5 billion, driven by higher interest income and gains on stocks.

• ROE guidance was raised to 7.7% (6.3% per TSE standards), with a focus on expanding net interest and fee income, cost control, and enhanced shareholder returns.

• Shareholder returns enhanced via a JPY 20 billion share buyback and a dividend forecast of 23 yen per share (+1 yen YoY).

Financial highlights

• Gross operating profit for 1H FY2024 was JPY 345.1–345.2 billion, up 10.2% year-on-year.

• Net interest income increased by JPY 24.1 billion year-on-year, with NII from domestic loans and deposits up JPY 6.5 billion.

• Fee income reached a record-high interim profit, up JPY 6.4 billion or 6% year-on-year, driven by AUM, settlements, and corporate solutions.

• Net gains on stocks, including equity derivatives, increased by JPY 24 billion, with total net gains on stocks at JPY 47.5 billion.

• Cost-income ratio improved to 63.9%, entering the targeted low 60% range.

Outlook and guidance

• Full-year net income target revised upward to JPY 175 billion (+JPY 10 billion vs initial), or JPY 190 billion on an adjusted basis, with EPS forecast at JPY 75.62.

• ROE expected at 7.7% (6.3% TSE), with potential to reach 9–10% if policy interest rates rise to 0.50%.

• Shareholder return ratio projected at 53.3% for the fiscal year, including a JPY 20 billion share buyback.

• Dividend forecast raised to 23 yen per share for FY2024.

• Management notes ongoing economic uncertainty and provides earnings targets rather than forecasts.