Edited Transcript of 8308.T earnings conference call or presentation 18-May-20

Tokyo Jun 27, 2020 (Thomson StreetEvents) — Edited Transcript of Resona Holdings Inc earnings conference call or presentation Monday, May 18, 2020 at 10:59:00am GMT

Resona Holdings, Inc. – President, Representative Executive Officer & Director

Masahiro Minami, Resona Holdings, Inc. – President, Representative Executive Officer & Director [1]

This is Masahiro Minami, President of Resona Holdings. Thank you very much for joining our results presentation despite your busy schedule.

Resona Group had a change in the President role effective April 1. And starting with this result presentation, I will serve as a speaker. I’d like to ask for your continued support. Under the new management team, we will continue to uphold our goal of becoming the #1 retail financial services group, and that strategy will remain intact. We’ll also accelerate our initiatives on digital transformation and usage of data and make a group effort to maximize the enterprise value.

Given the COVID-19 situation, we decided to communicate our results presentation over a conference call, and we thank you in advance for your understanding. I will touch upon the impact of COVID-19 on our business during the presentation. As the economic activities are on a stall with measures taken to prevent the spread of the pandemic, we have made it our utmost priority to first understand what the customers are facing with their business and with their liquidity management so that we can extend sufficient support.

Now I’d like to dive into my main presentation in which I will focus on the medium-term management plan that we unveiled on May 12. I will keep my comments on FY ’19 results brief as we had a conference call on the date of the results announcement.

Please turn to Page 4. This is the outline of the financial results for FY ’19. Net income for the year ended March 2020 was JPY 152.4 billion, down by JPY 22.7 billion from the previous year. If we adjusted for the one-off gain of JPY 39.8 billion we booked in FY ’18 related to the integration of KMFG, the year-on-year change in effect would have been a positive growth of JPY 17.1 billion. The result was 95.2% against our full year target of JPY 160 billion. Actual net operating profit was up by JPY 16.3 billion or by 7.2% year-on-year, reaching JPY 241.9 billion. Net interest income from domestic loans and deposits was down by JPY 11 billion year-on-year, but the average loan balance and the loan-to-deposit spread were both in line with the business plan. The decline of loan book yield continues to moderate.

Fee income was down by JPY 3.5 billion year-on-year. The decline was particularly significant from insurance product sales due to the terms of the products adjusted to be slightly less generous, but fee from fund wrap and settlement, which were the services of our forecast is steadily rising as a trend. Net gains on bonds were up by JPY 19.1…

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