Resona (8308) Q3 2025 earnings summary

Executive summary

• Net income attributable to owners of parent rose 48.2% year-over-year to JPY169.1–169.2 bn, achieving 96.6% of the full-year target, driven by higher net interest and fee income.

• Core net operating profit increased to JPY198.3 bn, up 20.7% year-over-year, with credit costs improving by JPY16.6 bn to JPY5.5 bn.

• Ordinary income rose 21.2% year-over-year to JPY809.5 bn; ordinary profit surged 49.1% to JPY237.5 bn.

• Gross operating profit grew by 11.1% year-over-year to JPY515.2 bn, with fee income at a record high for the 1-3Q period.

• Operating expenses increased by 6.4% year-over-year, reflecting investments in human resources and IT.

Financial highlights

• Net interest income was JPY343.1 bn, up JPY37.1 bn year-over-year, mainly from corporate loans.

• Fee income reached JPY164.1 bn, up JPY11.2 bn year-over-year, driven by AUM, corporate solutions, and settlement-related services.

• EPS rose to 73.14–73.15 yen, up over 50% year-over-year; ROE improved to 9.9%.

• Total assets at December 31, 2024, were JPY77.2 trillion, up JPY1.06 trillion from March 2024.

• Loans and bills discounted increased by JPY1.14 trillion to JPY43.88 trillion; deposits decreased by JPY687.5 bn to JPY62.87 trillion.

Outlook and guidance

• Full-year net income target revised upward to JPY175.0 bn, with a dividend forecast of 23.0 yen per share.

• Upward revision driven by higher net interest income, fee income, and net gains on stocks, partially offset by MB integration costs.

• Aiming for a fourth consecutive year of record-high profits, with continued reduction of policy stock holdings and proactive balance sheet management.

• ROE expected to reach 9–10% after full impact of policy interest rate hikes.

• No revision to earnings targets or dividend forecasts; year-end dividend expected at 11.50 yen per share.