Investor Relations Meeting for FY2023- Business Results and Future Management Direction -May 20, 2024

 Abbreviations and definitions of the figures presented in this material are as follows:[HD] Resona Holdings*1[RB] Resona Bank[SR] Saitama Resona Bank[KMB] Kansai Mirai Bank*2[MB] Minato Bank
*1 Resona Holdings merged and absorbed with [KMFG] Kansai Mirai Financial Group in April 2024

*2 [KU] Kansai Urban Banking Corporation and [KO] Kinki Osaka Bank merged on April 1, 2019

Negative figures represent items that would reduce net income.
Figures include data for internal administration purpose.

The forward-looking statements contained in this material 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 change related to the government’s
and central bank’s policies, laws, business practices and their interpretation, emergence of new corporatebankruptcies, changes in the economic environment in Japan and abroad and any other factors which arebeyond control of the Resona Group.
These forward-looking 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.
1

Points We Would Like to Communicate
1Operating results for FY2023 exceeded forecasts [105.9%] as we made progress in building foundations
toward achieving "Profitability surpassing MMP target"2

Our aim for FY2024 is to be a year ahead of schedule in achieving the MMP targets,
excluding one-off costs associated with the integration of MB3

Our FY2024 target calls for achieving a JPY7.0 bn*1 increase core income compared with the annual
target set under the MMP, including an additional capital allocation existing outside the MMP that wasformulated in response to changes in the environment
Achieve higher top-line income by leveraging both net interest income and fee income

45Made steady progress in capital utilization in both organic and inorganic growth fields in order to improve
corporate value
ROE*2 of 7.2% in FY2023 ⇒ ROE of 7.3% in FY2024 (target), we also anticipate another significant
increase if there are further rate hikes
Announced a new plan for the reduction of policy-oriented stock holdings with the purpose of securing
management resources that can be allocated to measures to achieve further improvement in corporate
value
Cut back on their book value by 2/3 or more and reduce their fair value-based ratio to consolidated net
assets to 10% level

6

Steadily increased the value of shareholder returns
1H of FY2023: JPY35.9 bn ⇒ 2H of FY2023: JPY40.7 bn ⇒ 1H of FY2024: JPY46.9 bn (forecast)*1. Excluding the impact of the transforming two leasing companies into our wholly owned subsidiaries*2. Based on stockholders’ equity

2

Review of FY2023 and Forecast for FY2024

Initiatives to Improve Corporate Value

Capital Management

Aiming to Be a Company That Contributes Most
to SX of Retail Customers(ESG Initiatives)
Reference Material (Financial Highlights, MMP, Business Strategies and Other)3

Review of FY2023 and Forecast for FY2024

4

Outline of Financial Results for FY2023
 Net income attributable to owners of parent : JPY158.9 bn

HD consolidated(JPY bn) Down JPY1.4 bn, or 0.9%, YoY, Progress rate against the full year target*1 : 105.9%
 ROE (stockholders’ equity) : 7.2%, ROE (TSE standard) : 6.0%

 Actual net operating profit : JPY211.3 bn, Up JPY15.6 bn, or 7.9%, YoY
Core income*2 (actual basis excluding extraordinary factors*3,4): JPY158.7 bn, Down JPY4.8 bn, YoY
Progress rate against the full year target*5 : 105.8%

 Gross operating profit : JPY627.4 bn, Up JPY27.4 bn, or 4.5%, YoY Net interest income from domestic loans and deposits : Down JPY2.0 bn, YoY
Average loan balance : +3.74%, YoY, Loan rate : down by 3bps, YoY[Excluding loans to the Japanese government and others]
Average loan balance : +3.08%, YoY, Loan rate : down by 3bps, YoY
A turnaround in 2H toward profit growth[1H : Down JPY2.7 bn, YoY, 2H : Up JPY0.7 bn, YoY] Fee income : Up JPY4.8 bn*3, YoY
Achieved fourth consecutive year of annual growth in profit
and hit a historic high Net gains on bonds (including futures) : Up JPY21.3 bn, YoY
Increased due to a reaction to the measures taken in the previous year
to restore soundness, etc.

 Operating expenses : JPY416.5 bn, increased by JPY11.8 bn*4, YoY
Enhanced investment in human resources and IT
while controlling funds invested within the planned budget

 Credit costs : JPY35.6 bn (cost), increased by JPY19.7 bn, YoY
93.8% against the full year budget of JPY38.0 bn

 Completion of the merger of HD and KMFG (Apr. 1, 2024)
 Announced the new plan for reduction of policy-oriented stock holdings
 Annual DPS in FY2024 (forecast) : 23 yen (1 yen increase, YoY)YoY change

FY2023(a)Rate ofchange

(b)

(c)

1H

2H

(d)

(e)

(f)

(0.1)

(1.3)

165.0

Net income attributable toowners of parent

(1)

158.9

EPS (yen)

(2)

67.77

+0.29

+0.4%

BPS (yen)(3) 1,184.76+119.45+11.2%

ROE(stockholders' equity)

(4)

7.2%

(0.3)%ROE(TSE standard)

(5)

6.0%

(0.5)%

Gross operating profit

(6)

627.4

+27.4

+4.5% +21.7+5.7

Net interest income

(7)

421.6

+2.3

(7.3)

+9.6

*6

(8)

332.1

(2.0)

(2.7)

+0.7

Interest on yen bonds, etc. *7

(9)

30.9

+5.4

+2.6

+2.8

Interest on borrowings fromtrust account

(10)

(4.2)

(2.5)

(1.8)

(0.6)

(11)

213.5

+4.8

(2.9)

+7.8

(12)

34.0%

(0.7)%

(13)

25.4

+3.8

+2.2

+1.5

(14)

4.4

*3 +2.4

+1.8

+0.6

(15)

188.1

+1.0

(5.1)

+6.2

Other operating income

(16)

(7.7)

+20.1

+31.9

(11.7)Net gains on bonds(including futures)+32.2(10.9)

(3.0)

(8.8)

+7.9% +18.7(3.0)

NII from loans and deposits

Fee income
Fee income ratio
Trust fees
Joint management
designated money trust
Fees and commission
income(1.4) (0.9)%

*3

(17)

(26.4)+21.3

Operating expenses (excluding group(18)
banks' non-recurring items)(416.5)(11.8)

Cost income ratio (OHR)

FY2024
Target+7.3%(2.9)%

(19)

66.3%

(1.0)%

Actual net operating profit

(20)

211.3

+15.6

Core income (actual basis)

(21)

158.7

(4.8) (2.9)%(7.9)

Net gains on stocks(including equity derivatives)

(22)

60.1

+6.2

(14.4) +20.6

Credit costs(23)(35.6)(19.7)(2.5) (17.1)

Other gains, net(24)(12.9)

(4.1)

(3.0)

(1.1)

Net income before income taxes
and non-controlling interests

(25)

223.0

(2.0) (0.9)%

(1.2)

(0.7)

Income taxes and other(26)(64.6)

(1.3)

+0.9

(2.3)

Net income attributable tonon-controlling interests

(27)

0.6

+1.9

+0.1

+1.8

+3.1

 Share buyback up to JPY20.0 bn*1. Full year target of FY2023: JPY150.0 bn *2. Net interest income from domestic loans and deposits + Interest on yen bonds, etc. + Fee income + Operating expenses*3. Impact of the joint management designated money trust : Up JPY2.4 bn (interest of borrowings due to trust account : Down JPY2.4 bn)*4. Factor of the transforming two leasing companies into our wholly owned subsidiaries (4Q) : Down JPY1.1 bn *5. Full year core income target of FY2023: JPY150.0 bn*6. Total of non-consolidated domestic banking accounts of group banks, deposits include NCDs
*7. Interest on yen bonds and income from interest rate swaps

5

Progress Status under the MMP
 In FY2023, net income attributable to owners of parent was 105.9% in excess of our initial annual target,building on progress in initiatives aimed at achieving “Profitability surpassing MMP target.” Similarly, consolidated core income was 105.8% in excess of our target, making a good start in FY2024 after gaining
momentum in 2H of FY2023.
 Maintained robust control on and kept the CET1 ratio flat against the MMP target even as we steadily pushed ahead
with capital utilization
FY22(Results)

FY23(Results)(JPY bn)

Net income
attributableto ownersof parent

160.4

158.9

FY24
(Plan)

165.0

FY22(Results)

150.0
Initial plan

150.0
MMP

163.6

Consolidated
core income*1

67.4%

FY24
(Plan)

FY25
(MMP)

8%
7.6%
7.2%

7.3%

155.0
MMP

180.0
158.7

160.0

150.0
MMP

153.0
MMP

66.3%

FY23
(Results)

170.0

ROE*2

(JPY bn)

OHR

FY25
(MMP)

65% level

CET1
ratio*3

Total
shareholder
return ratio
Lower half of
60％ range

ESG index
selected
by GPIF(domestic stock)*4

10%

9.9%

48.2%

9.9%

10%
level

50% level

50% level

Aim to be
adoptedforall indices

Aim to be
adoptedforall indices

40.6%

Adoptedforall indices

Adoptedforall indices*1. Net interest income from domestic loans and deposits + Interest on yen bonds, etc. + Fee income + Operating expenses,
Figures of FY23 and FY24 are actual basis(excluding impact of the joint management designated money trust and the transforming two leasing companies into our wholly owned subsidiaries)*2. Net income / Total shareholders equity (simple sum of the balance at the beginning and the end of the term/2) *3. Based on the full enforcement of the finalized Basel 3 regulations under
the international standard; excluding net unrealized gains on available-for-sale securities *4. FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index,
MSCI Japan ESG Select Leaders Index (until FY22), MSCI NIHONKABU ESG Select Leaders Index (from FY23),
S&P/JPX Carbon Efficient Index series, MSCI Japan Empowering Women Index and Morningstar Japan ex-REIT Gender Diversity Tilt Index

6

Rationale for FY2024 Earnings Targets (vs FY2024 in MMP)HD
Consolidated

 FY2024 earnings targets aim to, in effect, achieve the MMP target (JPY170.0 bn in FY2025) a year ahead of schedule Core income is expected to increase by JPY7.0 bn (actual basis*1) due to growth in NII in terms of both volume and rates

Expected upsides and downsides

Core income (actual basis*1) +7.0

±0.0 (8.0)+7.0

Fee (4.0)
income+4.0

Net income
attributableto ownersof parent

158.9

Interest
NII from income
domestic on yen
loans bonds,
etc.
anddeposits
Net income
attributableto ownersof parent

*2

170.0
5.0*3

+7.0

+7.0*2 Net income Actual
attributable basis
Operating Other
to owners net income
expenses items,of parent excludingnet
expenses
165.0 with the
integration
of MB

155.0

FY24
(MMP)

[+]

 Further hikes in interest rates

In effect, achieve the MMP target
a year ahead of schedule
FY2024 (MMP) vs FY2024 (annual target): Primary variables
Core income +JPY7.0bn (actual basis*1)[ + ]  Negative interest rate cancellation

FY24(Target)(JPY bn)+10.0

 Growing funding demand and resulting
growth in the volume of corporate loan

+4.0

 Timely management of securities in linewith changes in the environment+7.0

 Growing proceeds from sale of policy-oriented
stock holdings+9.0[ - ]  ALM costs associated with rising interest

Vs MMP+10.0

FY23(Act.)[-]

 Greater-than-expected net gains on stocks due to a risein their fair value, etc.
 Growing expenses reflecting the acceleration of upfront
investment and structural reforms aimed at securing
future growth[+]

JPY bn,approximate figures

rates, etc.
 Constantly higher costs for foreign currency
funding(7.0)

 Growth in base costs, etc., due to inflation

(4.0)

(5.0)

Income before income taxes+14.0

Net income+10.0*1. Excluding extraordinary factor (the transforming two leasing companies into our wholly owned subsidiaries)*2. Factor of the transforming two leasing companies into our wholly owned subsidiaries (gross operating profit : +JPY7.0 bn,
operating expenses : JPY(4.0) bn *3. Expenses of JPY5.0 bn in connection with the integration of MB in FY24 (After taxes basis)

7

Initiatives to Improve Corporate Value

8

The Resona Group’s Ideals and the Direction It is Aiming For
Accelerate initiatives to realize “Retail No. 1”

PurposeLong-Term Vision“DNA of
Reform”

~20
years

2023
MMP
Retail No. 1
The first 1,000 days of taking on
corporate transformation (CX)

2015
2003

Full repaymentof public funds- From rehabilitation to taking on new challenges -Customer baseconsisting of
500,000 corporate
customers,
16 million individual
customers
and more

Megatrends

Information,
consulting
capabilities andfunctions as well as
products andservices affordedby the GroupBeyond Finance,
for a Brighter Future.

The "Solution Group" most
supported by customers andregional societies as it walks withthem into a brighter future together

Integration ofreal and digitalchannels

Generative AI

Externalcollaboration

Shift inmonetary policies→ Further hikes
in interest rates

Customers’ happiness is our pleasure9Financial and Non-Financial Approaches to Improve Corporate Value
Resona’s sustainability management• Business endeavors that start with addressing
issues confronting customers and regional communities

Constantenhancementof top-line
incomeRORA
ROA
Net income

Total assets

Total assets

RWA

ROE
⇒ Analysis of
the current
statusof ROE[p.72](pp.16-19)

Leverage following
risk adjustment
Utilize capital

Total shareholders’equitySustainable society

Reducecapitalcosts

Address issues
confronting regional
communities andhelp them achievesustainable growthresonance

Stability of profit

Resona Group’s
sustainable growth

Expand top-line income by leveraging bothnet interest income and fee income (pp.11-14)• Proactive BS management aligned with changes inthe environment• Accumulate high-quality fee income
Reform of management platforms and cost control

Cost control

RWA• High-quality, stable profit

Earn propermarket reputation• Integration of face-to-face and digital channels• Acceleration of upfront investment aimed at securing
future growth and structural reforms

Accelerate capital circulation
to improve corporate value (pp.11-13, 15, 21-23)• Expansion of organic and inorganic investments• Divest policy-oriented stock holdings
at an even faster pace / Secure spare capacity
for investment and risk-taking endeavors• Constantly enhance the content of shareholder returns

Help retail customers achieve SX (pp.25-42)

Increase the sophistication of risk governance
Enhance the disclosure of both financial andnon-financial information
Alleviate informational asymmetry throughIR dialogue (pp.43)
10Roll Out the Two Businesses in the Deflation Recovery Environment
Deflation recovery

The deflationary environment

Expand net interest income
Focus on enhancing
the quality of fee income

Exercise our fundamental strength supported by the advantage we derivefrom a deposit base consisting primarily of retail customers

Twoincomesources

Expand the volume of fee income
Deliver diverse solutions backed by strength of
our combined trust banking, commercial banking and DX capabilities

FY23

FY24 (Plan)

332.1 [ (2.0) ]340.3 [ +8.1 ]JPY bn, [ ] represents YoY change[Net interest income
from domestic loans
and deposits*1]

Expandnet interest
income164.8 [ (2.7) ]1H[Interest on
yen bonds, etc.*2]

1H[Fee income*3]2H

30.9 [ +5.4 ]14.4 [ +2.6 ]Expandthe volume
of fee income

167.3 [ +0.7 ]16.5 [ +2.8 ]2H211.0 [ +2.3 ]106.9 [ +7.1 ]104.0 [ (4.8) ]1H

2H

 Achieved a turnaround to growth in full-year
core income in terms of both volume and rates

35.5 [ + 4.6 ] Aim to secure a consistent growth track forprofit by further expanding our appetite

222.0 [ +10.9 ] Aim to achieve a fifth consecutive year ofannual growth in profit and hit anotherhistoric high

*1. Total of non-consolidated domestic banking accounts of group banks, deposits include NCDs
*2. Interest on yen bonds and income from interest rate swaps *3. Excluding impact of the joint management designated money trust

11

BS Management Approach Aligned with Possible Hikes in Yen Interest Rates
 Work on (i) upgrading RAF*1 and (ii) strengthen BS management to achieve “Profitability surpassing MMP target”
 Turnaround and raise ROA via a revival of the deposit-lending business and a securities portfolio designed to support stable interest
income Accelerate growth investment and structural reforms by strategically utilizing capital created via the reduction of policy-oriented stock
holdings

End of Mar. 2024
Total assets JPY76.1 tn

Proactively meet funding demandthat grows in step with recovery
from deflation
Balance of loans+JPY1.3 tn, YoY
 The corporate loan balance is expected
to increase JPY2.5 tn over two years (FY23
actual and FY24 plan), and our MMP (three
years) target of a JPY2.6 tn increase, could
be met almost a year ahead of schedule

Loans
JPY
42.7 tnLargecompanies
and other*2
22.5%

SMEs*2

Personal

38.3%

deposits*2

Deposits

Maintain and expand of deposit basecentered on retail,which boasts strong retention

JPY
63.5 tn

Balance of deposits+JPY1.6 tn, YoY

60.9%

Housing

Seize profit opportunities arisingfrom changes
in the interest rate environment
Balance of securities+JPY0.9 tn, YoY
 Continuously develop a core portfolio
designed to secure stable interest income
while appropriately controlling risks
 Increase the pace of reductionof policy-oriented stock holdings

Expand AUM ; accelerate the shift
from savings to investment

loans*2
39.3％

Securities JPY9.3 tn
JGB JPY3.2 tn*2

Other Assets JPY24.0 tn

Corporate
deposits*2

 # of individual customers having investment
trust, fund wrap and insurance products :1,000 thousands• # of Individual users of funded investment
trusts : +22.1%, YoY

31.5%

Utilize capital to improve ROE
Other 7.5%
Deposits at

NCDs JPY0.8 tn

BOJ

Improve ROA via a shift toward
investment assets
JPY(1.4) tn, YoY

 Overwhelming convenience⇒ Higher switching costs• # of Banking App DL*3: 9.37 mil (+22.4%, YoY)
• # of debit card issued : 3.18 mil
 # of companies that name a major bank as theirmain bank*4 : 68 thousands

JPY20.3 tn*1. Risk Appetite Framework *2. Total of group banks *3. Including external group

Other liabilities JPY8.9 tn
BOJ loans JPY3.2 tn

Total equity JPY2.7 tn*4. TEIKOKU DATABANK (2023)

 Organic growth : Golden opportunities to expand
lending balance due to improvement in
profitability
 Inorganic growth : Ongoing initiatives to secure
deals aimed at helping us acquire customer
bases, management resources and functions
 Shareholder returns : Enhancement ofshareholder returns through profit expansion

12Possible Impact on Earnings while JPY Interest Rate Hikes (provisional calculation)
If the policy interest rate rises to 0.50%, ROE is expected to reach 9-10%[Assumption for provisional calculation]

Policyinterest rate Balance sheet at the end of March, 2024: Unchanged

0.50%(JPY bn)+84.0

 Reflecting the impact on loans, investment bonds and time deposits with interest rates
that will be updated within a year, as well as savings accounts, deposits at the Bank ofJapan and interest rate swaps
 Annual basis after the impact of interest rate hikes has completely materialized

0.25%

+28.0

Negative interest rate
cancellation



ROE=

+10.0
Amount increase ingross operating profit

Composition of deposits*3

21%
JPY9.1 tn
Liquiddeposits
28%

Fixed Rate
19%

Prime Individual
Rate (JPY14.6tn)
Corporation*1
34%
32%

Liquiddeposits
Individual51%(JPY28.0 tn)
66%

46%
JPY19.4 tn

Prime
Rate
13%

Total shareholders equity (simple sum of the balanceat the beginning and the end of the term/2)(FY24 plan)

Note: Excludes the impact of inflation, etc., on operating expenses and credit costs

Composition of loan portfolio

Fixed
Rate
2%

Net income (FY24 plan) + Impact of the interest rate hikes(JPY38.7 tn)
66%

MarketRate *2
33%

JPY14.0 tn*1. Including apartment loans *2. Market rate-linked loans include the fixed-rate (spread) loans maturing in less than one year
*3. Domestic individual deposits + Domestic corporate deposits

Corporation(JPY20.0 tn)
34%
Time
deposits
5%
Time deposits
14%

Other 1%Other 0.2%

13Accumulate High-Quality Fee Income
Constantly introduce new businesses ⇒ Secure a robust recurring fee structure covering a broad range of sources
Fourth consecutive year ofannual growth in profit
Historic-high profit

Fee income
expansion

Past

Present

FutureTime frame for yielding the profit effectAn example of the effects of accumulating profit

FY2017

FY2020

FY2023JPY2.0 bn
JPY220.0 bn

JPY5.6 bn
JPY536.8 bn

JPY9.0 bn
JPY800.3 bn ]

 Debit card income

JPY1.5 bn

JPY3.3 bn

JPY5.9 bn

 Succession trust income

JPY4.1 bn

JPY4.9 bn

JPY6.5 bn

 M&A income

JPY2.3 bn

JPY2.8 bn

JPY4.0 bn

65 thousands

3.67 mil

9.37 milー

1financial group
2banks

6 financial group
7banks Fund wrap income*1 (Fed. 17-)
[ Balance of fund wrap*1

 Number of APP DL*1(Feb. 18-)
 Number of alliance companies utilizing
Financial Digital Platform (Jun. 20-)
*1. Including corporation and external group14

Proactively Execute Inorganic Growth Strategies
Expand inorganic growth investment aimed at improving ROE
Creating new value through co-creation
Securing specialist andother human resources will

Winning customers not yet reached
by Resona will[1] Enhance our customer base[2] Enhance our management
resources

Strengthening businesses that have affinity withexisting banking operations as well as those thattranscend the framework of finance will[3] Enhance our functions

FY2023 results

Transforming two leasing companies*1
into our wholly owned subsidiaries
ROIC

Strengthening the capital and business alliancewith Digital Garage

10% level

ROIC[Net income of total of two leasing companies]
Including approx. JPY0.8 bn*2
(JPY bn)from one-off factors

2.53

1.47

Digital Garage (DG)

RenamedResona Leasing
FY21
Capitalcontribution
ratio

One of Japan’s largest payment system providers
Over 1 million member stores

April 1, 2024
Merger of two
companies

1.53

FY22

FY23

Approx.
20%

100％

Prospected to be 10% level (6th year)

Cumulative number of startups
invested in over 400 companies

Data marketing

Dec. 2023 Strengthening the capitaland business alliance

Capitalcontribution
ratio Deepening of settlement andfinancial businesses Aim to create new values which is“beyond finance”

Approx.
2%

Approx.
12%

Apr. 1, 2024

Step up collaboration with Group banks
Realize greater synergies

Strengthen the integrated
management structure
Transfer 20% of shares in RKS*3 to DG*1. DFL Lease, Shutoken Leasing*2. Shutoken Leasing: Special dividends from the former subsidiary*3. Resona Kessai Service

Launch startup investment
CVC fund worth
JPY13.0 bn

15Integration of Face-to-Face and Digital Channels
100% of day-to-day transactions can be completed via digital channels
× Face-to-face channels serve for special occasions
Resolve issues requiringsophisticated solutions

Attractive human resourcesSuperior consulting capabilities

Personalized
proposals

F2F
Won prizes three times

Day-to-day
contact points

Digital2020, 2021 and 2023
Act as customers’ “running partner” byusing the power of digital technology(Customer base inside and outside the Group)

Nurture human resources who can deliver “a sense of
excitement that exceeds mere satisfaction”

Maximize time used to address issues customers are facing

Nurture and secure professionals

Bidirectional communications
via our largest transactional channel / App Multi-path personnel system*1
 A system equipped with 20 career courses and designed to enable all
employees to become professionals

 In-house and external training aimed at improving the abilities of
employees when addressing the diverse issues customers arefacing Approx. 470 graduates from Resona Academy[Number of App DL(including external group)]
10 mil Also helps raise the efficiencyof our clerical work
2018/2
Launched(1st round: Jul. 2019; 9th round: Nov. 2024 (scheduled))

28.3%

48.8%

100

 Change missions assigned
to human resources

HalvingHalving

Number of
hiring(people)

FY19

FY22

FY23

FY25(MMP)

45

174

428

500

*1. In place at RB, SR and some other Group companies*3. Volume of clerical work handled at branches (RB)2026/3(Target)[Volume of clerical work*3 (specific index)]

38.7%

4.9%

2024/3

Exhaustive overhaul of business processes
via the use of AI and digital technologies

 Review our hiring portfolio[Ratio of individuals recruited as specialists or mid-career hires*2]

 Anytime from anywhere

9.37 mil

50
25
2005/3

2013/3

MMP

FurtherhalvingEnhance top-line income

Next MMP

2. Ratio of individuals recruited as specialists or mid-career hires to total number of hires

16Upfront Investment in Human Capital
Enhance investment in human resources supporting sustainable growth and structural reforms (CX)
FY19
Act.

FY22
Act.

FY23
Act.

FY25
MMP

(People)Downsized theportfolio over thecourse of theprevious MMP tothe level prior to
the integration of
KMFG

32,200Group
total
workforce

28,80028,50028,100(end ofthe fiscal year)

Previous MMP(3,400), (10.5)%

FY19
Act.

Current MMP(700), (2.4)%(4,100), (12.7)%

Continue shifting
our human
resources to ourfields of focus(+570 employees
moved during the
MMP period)

FY22
Act.

FY23
Act.

(JPY mil)

7.3
7.0
Progress in
structural reforms

6.7

Personnel
expensesperemployee

6.2

↓

+7.5%

Higherproductivity

+9.3%

↓
+17.6%
Enhanced
investment in
human resources(JPY bn)(JPY mil)

↓

207.3
201.9

199.4
194.3

Personnel
expenses(7.6)(3.7)%

FY25
MMP

+13.0
+6.6%

6.4
Expand HRrelated
investment by
taking the above
factors into
account(upward wage
revisions,training, etc.)

5.6

Core
income*1
peremployee

5.6

4.4

Further
improvement in
employeeengagement↓+26.4%+12.7%

Improvement ofPH earnings+42.6%+5.3, +2.6%*1. Core income (Net interest income from domestic loans and deposits + Interest on yen bonds, etc. + Fee income + Operating expenses)/workforce

17Upfront Investment in Intellectual Capital (IT)Develop next-generation IT / systems supporting sustainable growth and structural reforms (CX) Expand strategic investment aimed at strengthening our capabilities to achieve CX and growth in top-line income[Amount of IT investment]

Overview of key measures and expected effects• Improvement in productivity via process reforms / enhancementof top-line income

121.0(JPY bn)

Expected effects

+38.0

83.0

Main projects
Previous Current FY23
MMP
MMP
(Act.)

65.0

Strategic
investment

13.0

56.0

27.5

(breakdown)

Generalinvestment

70.0

56.0

Challenge
area*1

6.0

33.0

10.0

Systemintegration
of MB

6.0

20.0

17.0

Others1.0

Restructuring oftrust banking and pension
management systems
Restructuring of
housing loan-related
systems
Development of
new lending systems(from FY22 to a 10 years later)

 Double pension asset balance (+JPY5 tn)
 Streamline the majority of existing operations
 Double loan origination amount per year(+JPY1 tn)

 Reduce workload (screening related) by 60%
 Operational reforms within lending sections→ Maximize time spent in direct customer
communication• Integrate MB’s back-office operations and systems: Jan. 25 (scheduled) Digitize branch-counter operations(introduce tablets, location-free customer reception)

Strategic
investment

13.0

Previous MMP

3.0

0.5

 Halve the volume of branch-counter and back-office operations(utilize the Group’s universal platform)

Current MMP[IT Cost]※Visualizing the plan

(JPY bn)
Strategic costs*2

Expand allocations in order tosecure sustainable growthBase costs*3

Maintain stringent control

80
40
FY22

10 years later*1. Development of lending- and loan-related systems, the development of trust and pension management systems, new businesses, etc.
*2. Depreciation costs of strategic investment and general investment (additional investment), etc.
*3. Maintenance costs, depreciation costs of general investment (existing investment), etc.

18

Credit Costs Control
Dispersed credit portfolio ⇒ Anticipate that a certain degree of risk control is feasible even when interest rates rise
 Average ratio of credit costs recorded over the long term (including during the aftermath of the Lehman Brothers bankruptcy) is (11.5)bps.
Risk resilience among SMEs is on an improvement track.
Reversalgains[Long-term trend in the ratio of credit costs*1]
（bps）
+20
0 (25.2)
(20)
(40)
(60)
(80)
FY06

+9.7

The Lehman Brothers bankruptcy

Average over the calculation period:(11.5)bps(66.7)

FY08

Expenses

FY13

FY20

Credit rating composition*2
2008/3

(9.3)

(8.4)

(15.0)Net assets to total assets■ Normal obligors (upper)■ Normal obligors (other)■ Watch obligors

64.6%

FY24
(Plan)

Stability ratios of SMEs*3

2024/3

36.6%

FY23

43.6%
28.2%

Interest-bearing liabilities/ Total assets
31.7%
25.7%

Current ratio
185.3%
131.7%■ Other than above

 High-quality housing loan portfolio

2007
Apr. - Jun.

Long-term loans backed by collateral2023
Oct. – Dec.

2007
Apr. – Jun.

2023
Oct. – Dec.

2007
Apr. – Jun.

2023
Oct. – Dec.

Stringent screening model ⇒ Substantial stress to screening interest rates[Trends in the net loss ratio of housing loans*4](0.05)%(0.20)%(0.15)%(0.14)%(0.25)%

Average rate

FY06

(0.06)%(0.04)%(0.01)%(0.01)%(0.11)%

FY09

FY12

FY15

FY18

FY21

FY23

2.03%

1.66%

1.36%

1.16%

0.99%

0.91%

*1. Credit costs / (Loans and bills discounted + acceptances and guarantees), (Simple average of the balances at the beginning and end of the term), HD consolidated basis*2. RB+SR, based on the credit amounts *3. Financial Statements Statistics of Corporation (4 quarters moving average), Capital: 10 to 100 million yen*4. Housing loans guarantee subsidiaries’ subrogation ratio x (1-collection after subrogation), residential housing loans + apartment loans

19Capital Management

20Capital Management
 Enter a new phase in which we can step up the utilization of capital ⇒ Aim for ROE*1 of 8%
 ROE : FY23 (act.) 7.2%, FY24 (target) 7.3%
Growth investment

Financial soundness

 Organic growth⇒ Expand loan assets, etc. with high returns relative to risk
 Inorganic growth⇒ Expanding customer bases, management resources and functions

 Maintain the CET1 ratio*2 at the 10% range
 CET1 ratio as of Mar. 24 : 9.9%

Improve Corporate Value

Shareholder return
 Enhance the content of shareholder returns in a way that gives due consideration to maintaining soundness
and securing growth investment opportunities
 Aim for a total shareholder return ratio of around 50% even as we continue to deliver a stable dividend stream
 FY23 : 48.2%

 Enhance shareholder returns (released in May 2024)[Trends in shareholder returns] (i) Annual DPS for FY24 (forecast) :Total dividend amount
Share buyback*3（JPY bn）+1 yen increase [ 22 ⇒ 23 yen per annum, +0.5 yen for both interim and end of the term](ii) Share buyback up to JPY20.0 bn• Total number of shares to be acquired: Up to 30,000,000 share (1.29% of the total number of ordinary shares issued*4)• Total acquisition cost : Up to JPY20.0 bn• Period of acquisition : From May 15, 2024 to Jun. 21, 2024
[Plan to cancel all of the treasury shares to be acquired on Jul. 10, 2024 ]80
60

Common DPS
(JPY)

40
20
0

10

10

10

10

10

12

12

12

15

17

17

19

20

21

10.0

21

21

Total return amount(JPY bn)
76.7
60.6 65.1 15.0
*5
20.0
10.0 15.0 10.0

21

21

0

22

23

50
40
+1 yen,30YoY
20Forecast 10

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

*1. Net income attributable to owners of parent / Total shareholders equity (simple sum of the balance at the beginning and the end of the term/2)*2. Based on the full enforcement of the finalized Basel 3 regulations under the international standard; excluding net unrealized gains on available-for-sale securities*3. The amount of treasury stock acquisition is rounded to the nearest hundred million yen *4. Excluding treasury shares*5. Implement share buyback (JPY40.9bn, 88 mil. shares) to neutralize dilutive effect on EPS from making KMFG a wholly owned subsidiary of
HD in from May to June 2021

60

0

21

How We Utilize Capital Capital allocation under the MMP(JPY bn) <Funding><Utilization>
580.0

580.0

Shareholder
returnCumulative
profit to beearned overthe course of
the current
MMP

Capital stock
as ofMar. 31, 2023

Current MMP 580.0

Previous MMP 395.0

Target on total shareholder return ratio “50% level”
240.0

Expansion

Target on total shareholder
return ratio “Middle 40%
range in the medium term” 175.0

Organic growth investment 240.0

Loans
System/ Markets[In which, loans]
Corporate loans
Housing loan

Amount of funds(Vs. 23/3)[In which, system]+2,630.0 (+13%)+1,000.0 (+7%)+30.0

Inorganic growth investment

M&A

Requiredvolume of capital+170.0
+30.0

X 2.6

Organic investment
90.0

+20.0

100.0

ChangeAllocated to measures toimprove soundness 130.0

 Progress in securing profit exceeded the MMP target⇒ Able to expand growth investment at a pace exceeding allocation plans under the MMP, especially in organic growth fields[FY23 actual + FY24 plan]

ActualDividends,
share buybacksOrganic
Net income
growth75.9 bn investment
158.9 bn

CET1
ratio
10%

Amount of funds•Corporate loans +1,480.0 bn•Housing loan

2023/3(Act.)+170.0 bn

Plan

Dividends,
share buybacks Organic
Net income
growthinvestment
165.0 bn

Inorganic
growthinvestment
Up to 20.0 bn•Transforming two leasing
companies into our wholly
owned subsidiaries•Strengthening the capital andbusiness alliance with DG

CET1
ratio
9.9%
2024/3(Act.)

Amount of funds• Corporate loans +1,030.0 bn• Housing loan

+300.0 bn

Inorganic
growthinvestment
CET1
ratio
9.9%
2025/3(Plan)

Cumulative volume of funds extended in corporate loans over two years: JPY2,510.0 bn; a progress ratio of more than 90% against our three-year target under the MMP

22

The New Plan for Reduction of Policy-Oriented Stock Holdings
Create new value to be delivered to customers/
Create management resources that can be allocated to growth investment and structural reforms
Drastically increase the pace of reductionof policy-oriented stock holdings*1

New challenges

Reduce over 2/3
of book value*2 by the end of March 2030
The fair value-based ratio
to consolidated net assets

Fair value
JPY1,030.4 bn

37%

Accelerate investment aimed
at securing sustainable growth

Create capitalequivalent to
JPY300.0 bn(1.5% of CET1 ratio)

Address issues confronting
our customers and society
as a whole

Structural reforms andthe strengthening offoundations, which areboth necessary to realize CX＜Specific fields in which we utilize capital＞
 Organic growth fields
 Meet growing funding demand in an inflationary environment
while strengthening our capabilities to extend sustainablefinancing and deliver equity solutions

 Inorganic growth fields
Reduceover 2/3

10% level Raise our ability to handle deals that could help us acquire
customer bases, management resources and functions

 Structural reforms and strengthening of foundations

Book value
JPY261.6 bn

 Expand IT- and HR-related investment while securing funds
for structural reforms
2024/32030/3(Plan)

Reduce the fair value-based ratio to consolidated net assets
to 10% level by the end of March 2030
Will reduce the ratio to the 20% levelin three years in the best-case scenario

Expand income

Improve capitalefficiency*1. Policy-oriented stocks are classified into (i) policy investment stocks and (ii) strategic investment stocks, according to the purpose of holding.
Of these, (i) policy investment stocks are targeted for reduction of the balance. All listed shares held by group banks are (i) policy investment stocks*2. Total of group banks. Acquisition cost basis. The presented figures include marketable securities only

Deliver evengreatershareholder
returns
23

Aiming to Be a Company That Contributes Most to
SX of Retail Customers(ESG Initiatives)

24

Long-Term Sustainability Indicators
Aiming for sustainable improvement in social and corporate value
FY2022

FY2023

FY2030 (target levels)

10.5 milcases

11.8 milcases

20.0 milcases

Retail Transition Financing Target(Cumulative total)

JPY1.8 tn

JPY3.7 tn

JPY10 tn

Declaration of Net-zero Greenhouse
Gas Emissions in the Investment and
Financing Portfolio

-

-

2050:
Net zero(Undergoing compilation of FY22
performance)
To be disclosed in the integrated
report 2024 in Jul. 2024

100~
130gCO2e/kWh

Value Creation Capability Indicator
Value forcustomers
andsociety

Environmental
value

Number of cases where solutions are provided

Interim target for the energy sector(Portfolio carbon intensity)

Carbon Neutrality Target (Scope 1 & 2)

Socialvalue

Targets for the Empowerment andPromotion of Women
Ratio of female directors and executive officers*1
Ratio of female senior managers*2
Ratio of female line managers*2

139 gCO2e/kwh[FY2021]

vs FY2013(43)%

vs FY2013[FY2021][FY2022]

15.3％

12.1％*3

30% or more

13.4％

14.8％

20% or more

31.4％

32.8％

40% or more

69.3％

70.0％

Increase the ratio of
positive responses(56)%

Well-Being Indicator
Value foremployees*1. HD

Ratio of positive responses in questionnaires
regarding a sense of fulfillment felt in work andprivate life as part of employee surveys*2. Sum of HD, RB, SR, KMB and MB, figures until FY23 include KMFG

*3. As of Apr. 1, 2024

Net zero25

E (Environment): Retail Transition Finance
Enhance assistance to retail customers and continuously act as their “running partner,”
helping them update their awareness and transform their modes of behavior
FY23 transaction volume : JPY1.9 tn : The progress rate is 64.1% towards the MMP target (JPY3 tn / 3years)
Cumulative total (Apr. 2021-) of JPY3.7 tn (Target for FY30: cumulative total of JPY10 tn)
 SMEs play an essential role in the nationwide realization of
SDGs and SX# of employees
Approx. 70%*1

Added value createdApprox. 53%*1

Customer phase in terms of SX initiatives# of companies
Approx. 99.7%*1

 Offer diverse solutions to serve customers at various
stages of initiatives＜Resona’s mission＞
Translate each customer initiative into value of social impact

Corporate field Promote in-depth dialogue (step up customer assistancein which we act as a “running partner”; Apr. 2024-)
 Develop a systematic flow to guide customer initiatives aimed at achieving
CN*2 based on the Group’s standard
 Conduct interviews to clarify the current status of customers, next steps tobe taken and viable Resona Group solutions to be offered
Interviews
Replies / updates

Assess the stage customers haveachieved in their initiatives

Steadily support
customers’ SX efforts
Customers move onto the next stage• Sustainability Linked Loans(SLL)• Private placement Green Bonds(GB)• Positive Impact Loan
• Resona SX Framework Loan
• Loan products with conditions linked to ESG
target accomplishments• SDGs Consulting Fund
 SDGs mapping + Simplified PR consulting
 Consulting on measures to achieve carbon
neutrality• A simplified CO2 emission
calculation service• Private placement SDGs promotion
bonds
Small and medium-sized enterprise

Offer solutions aligned witheach customer’s stage

Mid-sized
Large

Personal field Initiative for individuals loans field• Privileges granted to loan borrowers who purchase eco-friendly housing• SX housing loans (RB/SR) (Apr. 2023-)(Expanded scope of SX housing covered by the loan scheme: low-carbon housing,housing built using domestically produced wood, housing that conforms with
“Anshin R” standards, etc.)• Offer information on legal
regulations, subsidy programs
and other industry trends forconstruction and real-estatebusinesses*1. The Small and Medium Enterprise Agency “2023 White Paper on Small and Medium Enterprises in Japan”*2. Carbon Neutrality

Facilitate
the popularization of
eco-friendly housing26

E (Environment): Carbon Neutrality (1) -Scope1&2Initiatives to reduce greenhouse gas (GHG) emissions (Scopes 1 & 2) arising from the Group’s energy use Measures to achieve our carbon neutrality target (reducing CO2 emissions to net zero by the end of FY2030)
 Steadily reduce the volume of CO2 emissions via the proactive introduction of clean energy, such as renewable energy, with the utmost priority placedon reducing emissions attributable to electricity use, the source of 80% of our emissions
 Completed the switchover of energy sources at energy-intensive facilities, such as head offices and back-office centers, by the end of FY2022 andshifted our focus in FY2023 to promoting similar switchovers at branches
 Aim to achieve a 100% switchover to renewable energy sources, etc., at facilities for which energy is directly procured by the Group by the end of
FY2025[Results of renewable energy introduction]
FY2021

FY2022

FY2023

RB

SR

KMB

MB

RB

SR

KMB

MB

RB

SR

KMB

MB

Resona Gr
Osaka HQ

HQ
2 branches

Biwakobld.

HQ

System andadministrative
Center5 branches

Shinsaibashi
HQ
49 branches

Seishin bld.

127 branches

Urawa-chuo
bld.
83 branches

20 branches

8 branches[CO2 emissions volume (t-CO2)*1]

92,991

83,09083,378

Scope1

5,444

Scope235,69882,85573,77772,006

Emissions fromenergy sources

34,453

Total

41,142

66,26657,45052,26580%of total*2

41,142Currently aggregating

Fiscal
year

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2030

*1. Scope 1&2 CO2 emissions attributable to Group banks are calculated based on methods stipulated by Japan’s Energy Saving Act for statutory periodic reporting. Emission volumes attributableto energy use are calculated by multiplying the volume of energy use by the basic emission factors or the adjusted emission factors of each electricity
27
supplier. *2 FY2022 results are independently verified by Deloitte Tohmatsu Sustainability Co., Ltd., a third-party agency.

E (Environment): Carbon Neutrality (2) -Scope3Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio
 Committed to achieving net zero by 2050 in terms of GHG emissions from our investment and financing portfolio
 Identified interim targets to be achieved by the end of FY2030 for investees/borrowers in the energy sector

Initiatives undertaken thus far

Identification of interim targets in May 2023

• Identified “Real estate / Construction,” “Automotive / Transportation” and “Energy” aspriority sectors in light of such factors as the potential impact of climate change on
carbon-related sectors specified by the TCFD*1, the size of our portfolio, and a sectorbased analysis of financed emissions determined using simple calculation methods.
• Further analyses, including quantitative risk assessments, were also conducted.

• Implemented the assessment and analysis of financed emissions, emphasizing the energy
sector over other priority sectors as it has already seen advances in the development of
measurement methods and data accumulation• Measurements of three sector components were conducted*2: “Electric power,” “Oil / Gas”
and “Coal.”[Breakdown of financed emissions by sector ]priority sectors
3%■ Energy■ Real estate / Construction

6%[Energy sector (Electric power, Oil/Gas, Coal) of financed emissions]
0%15%■ Automobile / Transport■ Materials

25%■ Agriculture / Food

※ The results for the end of Mar. 2023 are currently being aggregated.
They will be disclosed in the integrated report to be issued in Jul. 2024.
Scope subject to
GHG emission
Indicators
Results(2022/3)
calculation
Electric
powerPower generation
Scope1

Physical carbon
emission intensity

139
gCO2e/kWh

JPY276.0 bn

Oil / Gas

MiningScope1-3

Absolute volume

0.17
MtCO2eJPY7.4 bn

Coal

MiningScope1-3

Absolute volume－(Not applicable)

30%■ Paper pulp/ Forestry products■ Banking / Life insurance

Amount ofinvestments and
loans

21%

 Taking the above factors into account, we have identified interim targets for the energy sector (targets have not been set for “Oil / Gas” and “Coal” as the number ofcustomers in these fields is very low)

Concepts
behind target
setting for theenergy sector• The current carbon emission intensity, which amounts to 139gCO2e/kWh, falls short of the standard for 2030 envisioned in the 1.5℃ scenario (NZE2050),*3
due mainly to the general termination of new project financing for coal-fired power generation businesses and proactive lending to domestic borrowers
engaged in renewable energy-related businesses.
• On the other hand, the energy sector is an infrastructure component supporting all industries as well as people’s daily lives. Accordingly, pursuingthe decarbonization of this sector is essential to helping retail customers achieve decarbonization.
• Therefore, we will strive for the popularization of renewable energy, which is integral to nationwide decarbonization, while supporting power generation
businesses endeavoring to achieve transition and technological innovation. In these ways, we aim to reduce emissions from the energy sector to a level thatis substantially lower than the global standard stipulated in the 1.5℃ target.

Interim targets• Carbon emission intensity in FY2030: 100 to 130gCO2e/kWh*1. The Company’s sector classification consists of “Energy,” “Real estate/Construction,” “Automobile/Transport,” “Materials,” “Agriculture/Food,”“Paper pulp/Forestry products,” and “Banking/Life Insurance.” *2. Calculated with reference to methods developed by the PCAF
*3. Comparison with the 2030 carbon emission intensity (165gCO2e/kWh) envisioned in the NZE2050(WEO2022)

28

E (Environment): Carbon Neutrality (3) -Scope3Initiatives to reduce GHG emissions (Scope 3, Category 15) from our investment and financing portfolio Basis for the calculation of financed emissions
 The volume of GHG emissions from each investee/borrower corporation is multiplied by the attribution factor (Balance of investment and financing /Sum of assets and liabilities) and the resulting numerical values for all investee/borrower corporations are aggregated

FormulaEnergy sector

Oil/Gas sectorΣ（Σ（Carbon emission intensityof investees/borrowers(gCO2e/kWh)Volume of emissions frominvestees/borrowers(MtCO2e)Coverageratio*1

Data quality
score*2

85%

2.1

100%

3.0

Value of investment/financing by theCompany for investees/borrowers

× Total value of investment/financing by the Company ）for all investees/borrowers subject to calculation

×Value of investment/financing by theCompany for investees/borrowers

Sum of borrowings and capital held by
investees/borrowers）

 Initiatives to be undertaken going forward To achieve our interim targets regarding the energy sector, we will proactively extend credit to corporations engaged in renewable energy-related
businesses that will, in turn, facilitate the smooth transition of all other customers. Simultaneously, we will actively pursue dialogue withinvestees/borrowers and provide them with follow-up consulting on their initiatives.
 We will annually disclose the status of financed emissions associated with the “Energy,” “Oil / Gas” and “Coal” sectors while considering theassessment of financed emissions from priority sectors other than the energy sector and the formulation of interim targets for them.
 We are aware of the need to expand the scope of financed emission assessments to, ultimately, encompass our overall portfolio, including credit
extended to retail customers, and will thus be striving to reduce emissions from this portfolio. Accordingly, we will continue to act as a “running
partner” for retail customers and assist them in the transition of their awareness and modes of behavior. By doing so, we will strive to assess andreduce the volume of financed emissions associated with credit extended for retail customers.

*1. By sector, based on loans*2. Data-quality scores defined by PCAF

29E (Environment): Our Response to Global Warming & Climate Change
Board of Directors proactively pursue Resona Sustainability Challenge 2030 and step up climate change countermeasures

Board of Directors

Group Sustainability Promotion Committee

ReportIntegrated management of response
to climate change-related risks and opportunities

Supervise

Representative
executive officers

Identify risks
and opportunities for
the Resona Gr

Executive Committee

Qualitatively
evaluate risks andopportunities

Measures andtargets to reducerisk and increase
opportunities

Oct. ’18
Declared the support of
TCFDResponses
andoutcomes

Reflect outcomes of discussions on risks and opportunities from climate change in the Group strategies and risk management
 Impact on our largest asset class, loans
 Help corporate and individual customers mitigate and adapt to climate change through financial services

Minimizethe risks

Loan
initiatives

 Proactively engage with corporate customers who have yet to fully commit toenvironmental issues, encouraging them to step up their initiatives
 Clarify our stance on lending to businesses that may exert a seriously negative impact on theenvironment, such as enforcing general rule of abstaining from extending new loans to coal-fired
thermal-generation projects and extending new loans to coal mining projects (MTR method*1), etc.

Investment  Incorporate an ESG-oriented viewpoint into investment decision-making process
initiatives  Maintain constructive dialogue and engagement with investees

Expand theopportunities

Conserving
the environment
throughour products
and services[Individual customers]
 R246 ESG
 Offer benefits to loan customers
who purchase eco-friendly housing(housing loans)[Corporate clients]
 Simplified CO2 emissions calculation service
 Loan products with conditions linked to ESG
target accomplishments
 SX Framework Loan

[CDP scores*2]
Resona HD
SMFG
MUFG
Mizuho FG
SMTH

AAAAB

[The ratio of lending forthe energy and utility
sector*3 to the entire
portfolio]

1.3％(As of Mar. 31, 24)*1. A method used for the surface mining of coal seams in mountain areas. The use of the MTR method entails deforestation, and soil fromthe mountain top is usually dumped in valleys, rivers and other nearby locations.
*2. “CDP Climate Change 2023” on the CDP’s website,
as of May 1, 2024 *3. Lending to energy and utility sectors based on definitions under TCFD recommendations

30

S (Society): Diversity & Inclusion (1)Creating corporate value by drawing on diversity
 Step up the empowerment of women, to date a source of strength for the Group, ensuring that they serve as a driving force ofvalue creation
Ratio of women

2024*1

FY2030 Target

Directors andexecutive officers*2

12.1%

30% or more

Senior managers*3

14.8%

20% or moreLine managers*3

32.8%

40% or more

2020
Ratio of female line managers
reached 30%(Reference) The ratio of female managers nationwide*4:
General manager or equivalent positions 8.0%, Manager or equivalent positions 11.6%[Line managers of women*5](People)34.5%40%

Line Managers
Ratio of line manaters

1,200

30%

800

17.4%

400

550

0

1,062
20%

2015
Repayment of public funds
completed
Introduced a “smart staff”
systemFirst female officer
2013 RB commended as one of the “Winners of
appointed
the Diversity Management Selection 100”
FY20132011 The Diversity Promotion Office established
Ratio of female
2008 Revised the personnel system to ensure the same wage
line managers
for the same work
reached 20%

10%

13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3

2024
HD ranked #2 in 100 Best Companies
Where Women Play Active Part 2024*6
2022
HD “Nadeshiko Brand”
2020
RB named one of the Leading Companies
Where Women Shine and chosen to receive
Minister of State for Gender Equality Award2018
SR named one of the Leading Companies
Where Women Shine and chosen to receive
Prime Ministerial award0%2005 “Resona Women’s Council” launched2003 Injection of public funds under the Deposit Insurance Act
2002 Renamed Resona Holdings

External evaluation
The “2024 J-Win Diversity
Award” Executive Award(HD)

Ranked #2 in 100
Best Companies
Where WomenPlay Active Part
2024*6 (HD)Awarded the excellent
health and productivity
management corporation
2024 (HD,KMFG)

Obtained
Eruboshi Certivication(all group banks)

Obtained
Platinum Kurumin(all group banks)*1. Directors and executive officers as of Apr. 1, 2024, senior managers and line managers as of the end of March *2. HD*3. Sum of HD, RB, SR, KMB and MB, figures until FY23 include KMFG *4. Ministry of Health, Labour and Welfare, 2023.7.31 Press Release*5. RB+SR *6. Based on a Survey 2024 of Workplace Opportunities for Female Workers undertaken by Nikkei WOMANAwarded the highest gold
rating in the PRIDE Index(for 7 consecutive years)
(HD)

31

S (Society): Diversity & Inclusion (2)Main initiatives and the status of their progress 13th Resona Women’s Council (Apr. 23-Mar. 24)
 Members: approx. 20 people from group banks and companies
 Members consist of diverse individuals (in terms of rank, age, etc.) from a range ofGroup companies and serving terms spanning one year who regularly meet on
a monthly basis
 Engage in bottom-up activities, i.e., delivering
proposals on women’s networking,the enhancement of women’s career awareness,the revision of various personnel systems,
the implementation of operational improvement
measures and the planning of new products

A picture taken at the meeting[Main achievements deriving from Resona Women’s Council]• Enhancement of childcare leave-related
programs• Institution of a mentoring system• Introduction of a reinstatement support program• Establishment of the Job Return System• Launch of a system enabling transition
from full-time to part-time employee
status and vice versa*1

 Expand the scope of employees eligible for the mentoring system forfemale manager candidates
 The mentoring system for newly appointed female department or branch managers has
been in place since 2012
 In FY22, women who have been newly appointed as manager candidates and assigned
to positions immediately below department or general managers, are now included in thescope of eligibility to the system

 Changes in eligibility requirements for those applying for special working
arrangements for child rearing- or nursing care-related reasons (Apr. 2024-)

 Step up initiatives to encourage male employees to play
greater roles in child rearing
 Established a framework allowing cessation from work for childcare
upon childbirth in line with the revision of relevant laws in Oct. 2022

< The Resona Group’s response > Designated the first 14 days of postnatal paternity leave as paid
leave and promoted the utilization of such leave along with fivedays of childbirth leave granted upon a spouse giving birth[Male employees’ status of childcare-related leave]
FY

2017

2018

2019

2020

2021

2022

2023

Ratio of employees
taking spousal
paternity leave (%)

100

100

100

100

100

100

100

Ratio of male
employees taking
childcare leaves(%)

-

-

-

-

80.3

98.2

100.8

 Made Resona Mi Rise a wholly owned subsidiary of HD
 In Apr. 24, Resona Mi Rise, which is engaged in the proactive hiringof people with disabilities, became a wholly owned subsidiary of HD
 Staff of this subsidiary stationed at the Paper Form Registration
Office in Otsu City, Siga Prefecture, are tasked with scanning paper
forms processed at branches to help reduce the volume of clerical
work previously handed by branches

 Revised the conventional system in order to develop an environment that enables bothmale and female employees to work over the long term with confidence, pursue their
desired careers and fully realize their potential without being forced to leave the workforce(Example: Lengthened the period in which employees are allowed to work shorter hours totake on child rearing and nursing care)*1. Upgraded from the “smart staff” system, which was introduced in 2015 to enable applicants to work shorter working hours or be assigned more
limited jobs compared with full-time employees

Employees at work

32

S (Society): Overview of Our Human Resource Strategy
HR vision: Create a prosperous future by working with diverse partners from within and outside the Group
whose aspirations resonate with ours

Value creation

Synergetic
effect⇔Well-being

Enhancethree pillars
Co-creation
Professional

Engagement

Resonance

Six strategic drivers （Measures / Non-financial targets ⇒ p.34）[1] Leadership[2] Transcending
boundaries[3] Speciality[4] Employee
autonomy &support[5] Job
fulfillment[6] Worker
friendliness

Aiming for “Co-creative / Engaged Professional”,
investment in human capital to : +JPY33.0 bn (during the current MMP period) Improve wages

Apr. 2021- New personnel system*1＜Organizational culture＞*1. In place at RB, SR and some other Group companies Strengthen training

 Step up hiring

 Multi-path Option of delayed
retirement（20 distinct job categories）

Integrity

Diversity & Inclusion

etc.

Empower diverse people to succeed

Taking on the challenge of reform
33

S (Society): Six Drivers for Realizing Human Resource Strategy (1)Drivers[1] Leadership[2] Transcending
boundaries[3] Speciality[4] Employee
autonomy &support[5] Job
fulfillment

⇒

FY23

 Ratio of women line manager

31.4% ⇒

 Ratio of mid-career employees
hired as managers

10.2% ⇒

Non-financial targets

FY22

 Ratio of mid-career employees
newly hired as senior
managers, including those fromdifferent sectors*1

42% ⇒ # of human resources withhighly specialized expertise*2[Of which, high-ranking
qualifications via in-house
specialist certification systems]

2,481
⇒
[+42]

 Cumulative total # of individuals
selected via in-house job
postings(FY21～FY30)
 Ratio of positive responses in
employee awareness surveys(i) A sense of fulfillment in work(ii) Openness of workplacecommunications

FY30

Our policy for FY24 initiatives

32.8%

40%

 Continue implementing assistance programs
aimed at enpowering women

11.7%

18%

44%

/

100%

 Enhance the recruitment of mid-career hires
and help them earn success Enhance the content of “boundarytranscending” training programs based on inhouse postings
 Invigorate the alumni network

684 ⇒(i) 66%⇒(ii) 79%

2,468
[+50]

3,000

 Strengthen employees’ consulting skills

1,194

4,000

(i) 69%

Increase
the ratio(ii) 80%

 Invest in human resources (HR) with an eye torecruiting and nurturing specialists

 Step up career development assistance and increase
the number of career opportunities offered to
employees through in-house job postings Provide employees with supportive measures alignedwith their individual needs and help them achieve
growth (introduce and utilize an HR system**3)

 Strengthen connections between the Purpose
and individual employee action
 Execute HR-related investment to improvewages while invigorating communications
 Reform and streamline our business processes[6] Worker
friendliness Ratio of annual paid leave
utilized

77.6% ⇒

83.1%

88%

*1. Training involving overseas assignment, external secondment or external dispatchment*2. Individuals who have acquired high-ranking qualifications via in-house specialist certification systems or other similar qualifications*3. Learning management system, talent management system

 Help employees balance work and family
duties while assisting them in their healthimprovement efforts

34

S (Society): Six Drivers for Realizing Human Resource Strategy (2)[1] Leadership[2] Transcending boundaries

 Enhanced the content of training for
department and branch managers
 Stepped up the recruitment of mid-career hires
in addition to implementing follow-up training
and hosting interaction meetings

 Developed the alumni network (Apr. 2024-)
 Enhanced “boundary-transcending” programs(e.g., externally dispatching employees)[Participants in external training / Ratio ofopportunities afforded via in-house posting][Number of mid-career hires](People)389(People)

72

FY21

312

FY23

 Expand investment aimed at supporting
self-motivated learning Enhance career development assistance(e.g., enhancement of internship and in-house
job-posting programs)[Participants in Career Colleges and Career Fairs](Cumulative total since Apr. 2021; pepole)

4,321
3,042

FY21

 Step up the development of DX- and IT-related
human resources[Individuals earmarked for specific specialist
courses]443(People)

844

FY22

FY23

FY21

[5] Job fulfillment

952

1,062

younger employees and the use of in-house SNSs)[Moments in which employees in their 20s feela sense of job fulfillment and their opinions regarding
the openness of our corporate culture*1]
Openness of79%
workplacecommunications

FY23*1. Ratio of positive responses gathered in the course of awareness surveys

60%

FY21

79%

FY23

 Promote health management(host walking events and training sessions) Step up assistance to employees striving tobalance work and family duties(Revise the conventional system that grants special
arrangements to employees engaged in child rearingor nursing care)[Number of days of paternity leave utilized bymale employees / Utilization ratio]

81%
98.2%
62%

58%

FY22

FY22

[6] Worker friendliness Increase opportunities offered to enable
employees to share their ideas about
the Purpose (⇒ p.36)
 Vitalize communications (e.g., interactions among

A sense offulfillment
in work

1,721

FY22

assistance to employee efforts to acquire high-profile
certification)

109[4] Employee autonomy & support

FY21

 Expand investment aimed at developing
specialist human resources (e.g., external training,

82%
71%

52%

135

FY22

[3] Speciality

80.3%

100.8%

14.2(Days)

FY23

4.0

2.9

FY21

FY22

FY23

35

Social (S): Entrenchment of the Purpose
Accelerate the sustainable improvement of social and corporate value through the entrenchment of the Purpose
Resona Group
Purpose⇒ Resona Group‘s
Conceptual Structure (p.77)

A path toward sustainable improvement in value Improvement in brand value
Customers/
Society

Recognition of and empathy toward Resona Group Purpose

 Improvement incustomer satisfaction
Virtuous
cycle

Employees

Recognition of and empathy
toward the Purpose(Linked with
our human resource strategy) Initiatives to ensure the entrenchment of
the Purpose Customers / Society
Gain public recognition of our corporate activities
informed by the Purpose•

TV commercials and web advertisements

Social value＋

Action in line with the Purpose Employees•

Implement training, prepare tools and content aimed
at securing employee understanding•

Dialogue between top management and employees,
the enhancement of employee performance evaluationand commendation systems

 Value creation(driven by innovation)
 Well-being

DNA of Reform•

Sustainableimprovement

Corporate value(Financial andnon-financial) Launch a “My Purpose” project thatempowers 30,000 employees toestablish their own Purposes Aim to enable all employees to establish
their own versions of the Purpose*1•

Encourage each employee to autonomously
practice the Purpose by hosting workshops
and training sessions, etc.
⇒ Improve employee engagement

 Well- Being indicator :70.0% in FY2023 (+0.7% year on year)⇒ Aim for further improvement*1. Individuals’ desires regarding how they aim to contribute to society as a member of the Resona Group

A “My Purpose”
workshop
Individual
ResonaGroup’s Resonance values andbeliefs
Purpose(views on life)

My Purpose

36Social (S): Social Contribution and Regional Vitalization Initiatives
Implement initiatives that transcend the framework of finance in our market areas:
Utilize the framework of an “advanced banking service company” under the Banking Act
SaitamaPrefecture

Regional Design Laboratory of Saitama

Make Saitama Prefecture the most livable prefecture in Japan
Overview of businesses

 Consulting on town development
 Addressing such social issues as the utilization of rivers andthe management of public facilities

 “Hometown tax payment” for corporations
 Commissioned by more than one third of municipalities*1 in
Saitama to handle relevant operations

 Business incubation assistance Risona Koedo Terrace (formerly Kawagoe Branch: Registered
Tangible Cultural Property of Japan)•

Operate bases in Saitama to incubate businesses and attract
public attention to local brands•

Grand opening on Wednesday May 15, 2024 !

KansaiRegionMirai Reenal Partners

Help regional communities create and communicate their
attractiveness in order to vitalize the Kansai area’s economy
Overview of businesses

 Consulting based on the REENAL method
Incubation of
new businesses

Visualization ofbusiness processes Assisting customers’ digitalization and other DX efforts
 Cloud funding involving product purchases
 Warakado Hiroba
 Customers of KMB and MB put
their products on cloud funding More than 2,300 people extended
support to 61 projects(Examples of projects)*1. Commissioned by 24 local governments out of the prefectural government and 63 municipalities in Saitama (as of Apr. 30, 2024)

37

Social (S): Helping Raise Financial Literacy
Promote financial and economic education tailored to meet needs in each age groupin order to enhance our asset formation support functions
Main initiatives
 Initiatives that leverage strengths and resources we possess as a financial group
Elementary andjunior high school
students

 Resona Group Kids’ Money Academy (2005-)
 Resona Teens’ Money Academy (2018-)
We offer programs in which elementary school students can learn about such topics as the role of banks throughquizzes and games developed by Group employees, as well as programs designed to enable junior high school
students to gain financial literacy and learn how to wisely handle their money as well as how the economy works.

 On-site lectures
High school
students

Implement programs designed to instill literacy related to life planning, asset formation and other topics to meet various
needs of schools

 Economics Koshien
Hosted regional tournaments for the “Economics Koshien” (high school championship), a quiz event in which young
people from regions nationwide pit their knowledge of financial and economic topics against one another On-site lectures and coordinated lectures
University
students

Provide lectures on the prevention of financial problems and the formation of assets while enabling students striving tobecome teachers to hold mock lectures, etc.

 Endowed lectures
These lectures entail discussions not only of such topics as finance and regional economies but sustainability-related
subjects

Businesspeople,etc.

 Seminars held for the employees of corporate customers, such as business operators
who entrust their pension assets to us
Seminars designed to help audiences understand the necessity of and tips on asset formation

 Seminars aimed at enabling the elderly to defend themselves from special fraud
Hold seminars in collaboration with police departments and local governments, etc., to prevent special fraud

 Disseminate information via SNSs and YouTube
 Released a new educational video discussing financial and economic topics (Mar. 2024-)<A screenshot from the video program> Accommodate customer needs (around 90% of questionnaire responses from customer households
engaged in child rearing indicate their need for financial and economic education*1)
 Video programs for junior and high school students were produced via tie-ups with popular lecturers
at cram school Yoyogi Seminar*1. Based on responses from 5,064 parents who are members of Resona Club (a point service program run by the Group)and raising children who are younger than university age

38G (Corporate Governance): Sophisticated Corporate Governance System
The first Japanese banking group which adopted a committee-based corporate governance structure
in 2003 for management transparency and objectivity
 Majority of the Board members are independent outside directors
Outsidedirectors
8[% of companies listed on TSE*1] 11.3%

Board
of
Directors

 Ratio of female directors: 25%

Femaledirectors
3[Avg. % of companies listed on TSE Prime*2] 13.6%

 Chairperson of the Board of Directors

Independent outside director appointed for chairperson from Jun. 2022[% of companies listed on TSE Prime*3] 3.6%

 Independent outside directors only
Nominating  Introduced and operated succession plan from 2007
Committee  Utilize outside consultants, etc. while involving
members of the nominating committeeIndependent outside directors only
Compen
Revised the remuneration for directors andsationexecutive officers in 2023 and introduced "ESG
Committee
indices" as evaluation criteria
Audit Majority of independent outside directors
Committee  Introduced double report line system in 2016

Outside directors*4

Chiharu Baba

Kimie Iwata

Setsuko Egami

Fumihiko Ike

Chairperson,
Compensation
Committee

Chairperson,
Nominating Committee

Member, Nominating
Committee
Member, Compensation
Committee

Chairperson of
the Board of Directors(Former Deputy President of Mizuho Trust& Banking)(Former Deputy Director-General Human

Resource Development Bureau Ministry of Labor)(Former Director & Executive Vice President of Shiseido)(Former Professor, Faculty of Sociology,
Musashi University)(Former Chairperson of Honda Motor)

Sawako Nohara

Masaki Yamauchi

Katsuyuki Tanaka

Ryuji Yasuda

Member,Compensation
Committee

Chairperson,
Audit Committee
Member,Nominating Committee

Member,Audit Committee

Member,Audit Committee

Attorney-at-law (Tokyo Seiwa Law Office)Management consultant (Former professor
at Hitotsubashi University Graduate School)

President of IPSe Marketing(Former Chairperson of Yamato Holdings)

Internal directors*4Masahiro Minami

Shigeki Ishida

Mikio Noguchi

Hisahiko Oikawa

President andRepresentative
Executive Officer
and Group CEO

Deputy President
and Executive Officer
and Group CSO

Executive Officer
Group CIO andGroup CPRO

Member,Audit Committee*1. Tokyo Stock Exchange (Jul. 2023) *2. Japan Research Institute (Oct. 2023) *3. Dai-ichi Life Research Institute (Oct. 2022)*4. Nominees for directors at the 23th Ordinary General Meeting of Shareholders to be held in Jun. 2024

39

G (Corporate Governance): Roles, Skills, and Expertise Required to Directors
Strengthening supervisory and decision-making functions
through active discussions at Board of Directors meetings, which are rich in diversity
 The skills (experience / knowledge) especially expected of nominees for directors are defined as follows.

Candidates were discussed and decided by the nominating committee.
Priority field for the "Retail No. 1" Financial Services Group

Legal
Organizational
management

Compliance

Finance
Accounting

Risk management●

Masahiro Minami●

IT
Sustainability

Diversity &Inclusion

Global●●●Digital●●●Shigeki Ishida●

Mikio Noguchi●

Hisahiko Oikawa
Chiharu Baba

Outsidedirectors●

Kimie Iwata

Outsidedirectors●

Setsuko Egami

Outsidedirectors

Fumihiko Ike

Outsidedirectors

Sawako Nohara

Outsidedirectors

Masaki Yamauchi

Outsidedirectors

Katsuyuki Tanaka

Outsidedirectors●

Ryuji Yasuda

Outsidedirectors

●

●

●

●

●
●

●

●

●

●

●

●

●

●

●
●
●

●

●

●

40

G (Corporate Governance): Initiatives for Corporate Governance Evolution
Our initiatives to improve the effectivenessof the Board of Directors’ operations
Outside directors’ meetings

Remuneration for directors and executive officers
 Compensation system for executive officers

 Outside directors conducted meetings on evaluation of the Board of
Directors. Actively discussed to further improve the effectiveness of theBoard of Directors.

Position-based
Compensation

Free discussion sessions
 Utilize input from outside directors into such key activities as strategies ina timely manner In FY2023, we regularly held free discussion sessions focused primarily
on following up on the newly launched MMP, with the aim of taking an“offensive governance” approach.

Onsite tours
 Facilitate understanding of the Resona Group’s business operations
 Held joint tours of RB’s branches (in Tokyo) and Osaka Head Office inNovember and December 2023, respectively, with the inclusion of RB’soutside directors into participants

Succession Plan (introduced in Jun. 2007)
 Our mechanism for ensuring the succession of roles and responsibilities
to be borne by executive officers
 The scope of the plan covers various candidates for HD and group banks,
ranging from those who are presidents to those who are new candidates
for executive officers
 Candidates are classified by job rank and systematically undergo selection
and training programs

Selection process• Advice from external consultants• Nominating Committee members
attend each program→Secure a structure for transparent
and fair selection

Training process
Nurture individuals who embody
Resona’s distinctive strength

Ideal traits of executive officer candidates

Annual incentive

Non-monetarycompensation (shares)

Monetary compensation
Fixed compensation

Medium- to long- term
incentives

Performance-based compensation

Annual incentive
Annually examine the status of specific key indicesin terms of consistency with MMP targets
Financial performanceassessments

Non-financial performanceassessments

Net income
attributable toowners of parent

Assessed based on
annual corporateachievements
relative to LongTerm Sustainability
Targets

Consolidated
core income

Individual
achievements

Medium- to longterm targets
Annual targets
Initiatives to fosterand spread a risk
cultureMedium-to long-term incentives
 Enhance linkage with shareholder value Encourage efforts employing medium- to long-term perspectives to improve
corporate value
 Scores granted by ESG evaluation agencies are adopted as ESG indices,with the aim of securing objectivity
Consolidated
ROE(Based onshareholders’ equity)

Relative TSR(Relative topeers inthe banking
industry)“Board Benefit Trust”
ESG
indices Utilize a trust scheme Grant shares Enhance linkage withperformance41

ESG-Based Recognitions and Initiatives
Status of inclusion into ESG-based stock indices*1[ESG indexes selected by GPIF (domestic stock)]Aim to be included in all indices below during the current MMP period

ESG-related external evaluations
MSCI

FTSE

(Seven-grade systemfrom AAA to CCC)

(Full score is set at 5)A

3.5

MSCI（WIN）

S&P(Full score is set at 10)(Decile ranking system)

7.7(Carbon Efficient Index)

Our support for ESG-related initiatives
at home and abroad

7*1. Please refer to our corporate website for details⇒ https://www.resona-gr.co.jp/holdings/english/sustainability/award/index.html

42Communications with Shareholders and Investors
Promote constructive stakeholder dialogue to sustainably improve our social and corporate value
 Results of dialogues held in FY2023
For institutional investors and analysts
General Meeting of
Shareholders

Presentation meetings
for individual investors

ZOOM webinars
discussing financial
results

Investor relations
meetings

IR meetings focused on
specific themes *1

Individual interviews(including viewers oflivestreaming)

Four

Two

Two

Around 240

SixCEO, CFO, etc.

CFO

CEO, CFO

Three outside directors
and officers in charge of
relevant departments

Of these,meetings hosted by
the CEO: Around 50

Of these,meetings hosted by
the CEO: Two

Around 400 attendees

 Feedback to management
 Periodic reports are furnished to the Board of Directors and the Executive Committee Deliver feedback to management on an as necessary basis without limiting methods when subjects are considered to require timely sharing
The small meeting hosted by outside directors

An example of items taken up for in-depth internal discussions in response toopinions from shareholders and investors• Provide the small meeting hosted by outside directors• Improve the content of IR materials (e.g., disclosure of ROE based on the TSE’s standard)• Accelerate the pace of divesting policy-oriented stock holdings• Methods for shareholder returns, etc.

Resona WAY (Resona Group Corporate Promises)
Customers

Shareholders

Society

Employees

Resona cherishes relationships
with customers.

Resona cherishes relationships
with shareholders.

Resona places importanceon its ties with society.

Resona highly regards employees'
dignity and personality.

*1. Including the implementation in Apr. 2024

43

Reference Material (Financial Highlights)

44

Breakdown of Financial Results for FY2023
Resona Holdings(Consolidated)(JPY bn)

Total of group banks
YoY

Resona
Bank

(a)

(b)

(c)

(d)

(e)

YoY

YoY

SaitamaResona
Bank

(f)

(g)

Difference

YoY

Kansai
Mirai
Bank

YoY

Minato
Bank

(h)

(i)

(j)

(k)

YoY
(l)

(a)-(c)Gross operating profit

(1)

627.4

+27.4

567.2

+23.0

326.8

+16.9

108.8

+1.1

89.6

+2.1

41.8

+2.7

60.2

Net interest income

(2)

421.6

+2.3

412.6

(0.3)

218.0

(6.6)

83.3

+1.6

77.5

+2.1

33.6

+2.5

9.0

NII from domestic loans and deposits

(3)

332.1

(2.0)

332.1

(2.0)

172.8

(0.5)

65.7

(1.0)

67.8

(0.7)

25.7

+0.3

Interest on yen bonds, etc.

(4)

30.9

+5.4

30.9

+5.4

18.1

+0.7

8.0

+3.3

2.5

+0.2

2.2

+1.0

Net gains on cancellation of investment trusts *1

(5)

3.1

+2.9

3.1

+2.8

1.1

+1.1

0.1

+0.1

1.5

+1.2

0.2

+0.2

－

Interest on borrowings from trust account

(6)

(4.2)

(2.5)

(4.2)

(2.5)

(4.2)

(2.5)

(7)

213.5

+4.8

164.6

+3.9

110.6

+5.1

30.4

+0.0

13.2

(1.6)

10.1

+0.4

48.9

Fee income
Fee income ratio

(8)

34.0%

(0.7)%

29.0%(0.4)%

33.8%(0.1)%

28.0%(0.2)%

14.8%(2.2)%

24.2%(0.5)%

Trust fees

(9)

25.4

+3.8

25.4

+3.7

25.3

+3.7

0.0

(0.0)

0.0

+0.0

－

－

(0.0)

Joint management designated money trust

(10)

4.4

+2.4

4.4

+2.4

4.4

+2.4

Fees and commission income

(11)

188.1

+1.0

139.1

+0.2

85.3

+1.4

30.4

+0.0

13.2

(1.6)

10.1

+0.4

48.9

Other operating income

(12)

(7.7)

+20.1

(9.9)

+19.3

(1.8)

+18.4

(4.9)

(0.5)

(1.1)

+1.7

(1.9)

(0.2)

2.1

(13)

(26.4)+21.3(26.4)+21.3(14.5)

+19.3

(7.0)

+0.0

(2.5)

+2.0

(2.2)

(0.1)

0.0

(14)

(416.5)(11.8)(384.8)(8.0)(212.0)(5.7)(76.0)(2.5) *2 (64.3)+1.3(32.3)(0.9)(31.7)

Cost income ratio (OHR)

(15)

66.3%

(1.0)%

67.8%(1.3)%

64.8%(1.6)%

69.8% +1.6%

71.7%(3.2)%

77.4%(3.0)%

Actual net operating profit

(16)

211.3

+15.6

182.4

+15.0

114.7

+11.2

32.8

(1.4)

25.3

+3.4

9.4

+1.8

28.9

Core income

(17)

160.0

(3.5)

142.8

(0.5)

89.5

(0.3)

28.2

(0.2)

19.3

(0.8)

5.7

+0.9

17.2

Core income (actual basis)

(18)

158.7

(4.8)

140.3

(3.0)

87.0

(2.8)

28.2

(0.2)

19.3

(0.8)

5.7

+0.9

18.4

209.4

(4.3)

130.7

(7.3)

40.8

+1.1

26.3

+0.0

11.5

+1.8

Net gains on bonds (including futures) *1

Operating expenses(excluding group banks' non-recurring items)

Core net operating profit*3 (19)(excluding gains on cancellation of investment trusts)
Net gains on stocks (including equity derivatives)

(20)

60.1

+6.2

60.6

+6.3

45.4

(0.1)

14.1

+7.4

0.2

(1.2)

0.7

+0.2

(0.4)

Credit costs(21)(35.6)(19.7)(29.6)(14.5)(19.9)(10.3)

(3.7)

(1.6)

(4.3)

(3.8)

(1.6)

+1.3

(6.0)

Other gains, net(22)(12.9)(4.1)(12.4)

(3.8)

(5.4)

(1.1)

(3.9)

(2.4)

(2.3)

+0.2

(0.6)

(0.4)

(0.4)

Net income before income taxes

(23)

223.0

(2.0)

200.9

+2.9

134.8

(0.4)

39.2

+1.9

18.9

(1.4)

7.9

+2.9

22.0

Income taxes and other(24)(64.6)(1.3)(57.3)(0.9)(38.9)(0.4)(11.5)

(0.1)

(3.5)

+1.6

(3.3)

(1.9)

Net income attributable to non-controlling interests

(25)

0.6

+1.9

(26)

158.9

(1.4)

143.6

+2.0

95.9

(0.8)

27.7

+1.7

15.3

+0.1

4.6

+0.9

Net income(attributable to owners of parent)*1. Losses on cancellation of investment trusts are posted in the net gains on bonds since net of the losses and dividends from investment trusts become negative
FY22 (RB/SR): Losses on cancellation of investment trusts: JPY(3.2) bn, dividends from investment trusts: + JPY1.7 bn → net amount: JPY(1.4) bn*2. Exclude goodwill amortization by KMB, JPY(0.7) bn, related to acquisition of former Biwako Bank
*3. Actual net operating profit - Gains on cancellation of investment trusts - Net gains on bonds

45

Factors for the Changes in Net Income Attributableto Owners of Parent (YoY Comparison)HD
Consolidated

Actual net operating profit +15.6（JPY bn）

Gross operating profit +27.4

NII from
domestic loans
Fee income
and deposits Other NII
+4.8
+4.3
(2.0)

160.4

FY2022

Net gains on bonds(including futures)
Yen bonds
Foreign bonds

Volume factor +12.3
Rate factor(14.3)

Settlement related
Corporate solution
AUM

Net gains
on stocks
Operating (including
equityOther GOP, expenses
derivatives)(11.8)
net
+6.2
+20.1

+2.8
+1.8
+1.6

+21.3
(7.0)
+28.3

Personnel expenses(5.0)
Non-personnel expenses (6.6)
Income taxes
(0.1)

Other
items,
net(3.5)

Creditcosts(19.7)

Act.
FY22
FY23

ETFs and other
Policy-oriented
stock holdings(Act.)
FY22
FY23(15.9)(35.6)(1.4),
YoY

158.9

+1.1
+5.1
51.3
56.4

FY202346

Total ofGroup Banks

Trend of Loans and Deposits (Domestic Account)
Average loan / deposit balance, rates and spread FY23 (YoY)

Net interest income from domestic loans and deposits
 NII from domestic loans and deposits began to grow,achieving a turnaround in 2H of FY23; plans call for
expanding NII from these operations by +JPY8.1 bn in FY24

[Excluding loans to the Japanese gov. and others]
Average loan balance : +3.08%, Loan rate : (3) bps=> FY24 (Plan) +4.23%+0 bps Growth in corporate loan balance gained greater momentum,
while net interest income made turnaround (FY24 +4bps, YoY)

[Trends in NII from domestic loans and deposits (YoY change) ]Avg. bal. (YoY change) : FY22 +2.1% => FY23 +4.1% => FY24 +6.4%
FY2023
Avg. bal. : Trillion Yen
Income/Cost : Billion Yen

Loans

Corporate banking

Act.

YoY*3

Plan

YoY*3

(a)

(b)

(c)

(d)

+0.7

Avg.
bal.

(1)

41.29

+3.74%

41.30+0.01%

Rate

(2)

0.81%

(0.03)%

0.85%+0.04%

Income

(3)

334.9

(2.5)

351.6

+16.7

Avg.
bal.

(4)

22.81

+2.99%

24.02+5.30%

Rate

(5)

0.79%

(0.02)%

0.82%+0.03%

Avg.
bal.

(6)

19.67

+4.14%

20.95+6.48%

Rate

(7)

0.75%

(0.01)%

0.79%+0.04%

Avg.
bal.

(8)

14.23

+1.16%

14.49+1.82%(2.7)

Corporate
Loan

Personal banking
business unit*2

Deposits(Including NCDs)

Rate

Loan rate on a stock basis
and composition by interest rate type1.03%

(0.03)%

1.00%(1)Fixed rate*4(2)Prime rate, etc.*4(3)Market rate *4
Corporate loan rate

(10)

Rate

(11)

62.39

+2.20%

63.94[Residential housing loan]
1H : 0.74%
2H : 0.75%

0.77%

FY242.00%(1)Fixed rate(2)Variable rate
Residential housing loans rate FY24
2.3%

0.79%1.50%

1.8%
0.87%

(Plan)(0.03)%

0.78%

Avg.
bal.

Cost

Loan-to-deposit[Corporate loan]

(9)

0.75%

(12)

(2.7)

(0.00)%+0.5

0.01%(11.3)(Plan)

0.99%

0.95%

1.00%

0.91%

1.3%

6%

0.8%
0.3%

+2.48%

100%
0.00%

FY24
(Full-year Plan)

2H of FY23

1H of FY23

*1

business unit

+8.1

(JPY bn)

FY2024+0.01%
(8.5)

(1)
(2)

28%
19%

27%
17%

28%
16%

0.50%
100%
(1)

-0.50%(2)

Spread

(13)

0.80%

(0.03)%

0.83%+0.02%(3)

Net
interest
income

(14)

332.1

(2.0)

340.3

+8.1

0%

54%

55%

56%

2022/32023/32024/3*1. Corporate loans (excluding loans to HD) + apartment loans, Figures are for internal administration purpose*2. Residential housing loans + other consumer loans, Figures are for internal administration purpose *3. Average balance : rate of change*4. Corporate banking business unit (excluding apartment loans) + public corporation, etc.

7%

6%

-0.2%
-0.7%

0.00%

93%

94%

94%

2022/32023/32024/3-1.00%

0%-1.50%

-1.2%
-1.7%
-2.2%

47

Total ofGroup Banks

Term-end Balance of Loans and Deposits
Term-end loan balanceTerm-end deposit balance

JPY tn, % represents YoY change

JPY tn, % represents YoY change(1)Corporate (Large companies and other)
Of which, excluding(2)Corporate (SMEs)
loans to the Japanesegov. and others(3)Corporate (Apartment loans)[1.90 tn] +4.7%(4)Personal（Consumer loans)(5)Personal（Residential housing loans)
43.01
41.43

(1)

6.88

63.63
61.02

62.07

(1)

4.72

4.89

(2)

19.20

(3)

+3.7%

39.61
8.38

(1)Other(2)Corporate(3)Personal

9.20

+2.5%

4.85

(0.8)%

19.10

20.05

+4.9%

37.09

38.07

38.73

+1.7%

2022/32023/32024/3

+9.8%

(2)

15.58

15.83

16.46

+3.9%

(3)
(4)

3.17
0.40

3.06
0.42

2.99
0.45

(2.4)%
+6.2%

(5)

13.56

13.72

13.89

+1.2%

2022/32023/32024/348

Total ofGroup Banks

Housing Loan Business

Composition of newly originated residential
housing loans by interest rate typeNew housing loan origination
JPY tn, % represents YoY change(1)Share of fixed rate residential housing loans(2)Share of variable rate residential housing loans
17%

3% 1% 2% 4% 7% 8%

12%(1) 42%(1)Apartment loan(2)Flat 35(3)Residential housing loan

(1)
(2)

0.15
0.03

1.36

0.17
0.02

3% 3% 4% 7% 3%

89% 96%

97% 97% 96% 93% 97%

45%

83%

97% 99% 98% 96% 93% 92%

88%(2) 58%1.42

11% 4%

55%

1.33(2.2)%

0.19
0.00

3 banks(RB,SR,KO)+11.3%

After KMFG integration

Term-end housing loan balance(51.9)%
JPY tn, % represents YoY change(1)Apartment loan(2)Residential housing loan

(3)

1.22

FY2021

1.16

FY2022

1.12

FY2023

16.73

16.79

16.88

(1)

3.17

3.06

2.99

(2.4)%

(2)

13.56

13.72

13.89

+1.2%

2022/32023/32024/3+0.5%(3.3)%

49

HD
Consolidated

Fee Income

 Significant increase in 2H of FY23
1H of FY23 : JPY105.8 bn (down JPY2.9 bn, or 2.7%, YoY) ⇒ 2H of FY23 : JPY107.6 bn (up JPY7.8 bn, or 7.8%, YoY)
 Increased driven by growth in settlement related (up JPY2.8 bn, or 3.9%, YoY) , corporate solution (up JPY1.8 bn, or 6.6%, YoY), etc.
Will achieve even stronger results in FY24 after
accomplishing a fourth consecutive year ofannual growth in profit, hitting a historic high

JPY bn, % represents
YoY change[Plans]
222.0
+3.9%

213.5

(1)AUM*1

208.3

208.6

52.1

51.0

+2.3%

52.7

・Insurance 10.4, (21.4)%
・Investment trust (sales commission) 200.0
7.6, +26.0%
・Investment trust (trust fees)
14.4, +6.8%
・Fund wrap*4 9.0, (0.6)%

55.0(2)Succession related*2

30.0

・M&A
4.0, +13.3%
・Real estate 15.0, (2.9)%(1)AUM*1

・Insurance
11.0
・Investment trust(sales commission) 7.5
・Investment trust(trust fees)
15.0
・Fund wrap*4
9.5
・Real estate 17.0

(2)Succession
related*2

23.4

25.0

25.6

(3)Corporate
solution

27.8

27.5

29.3

29.5

(3)Corporate solution(4)Pension trust

12.2

12.7

12.7

13.0

(4)Pension trust(5)Settlement
related*3

69.1

72.5

75.4

78.0

(5)Settlement related*3(6)Other

23.4

19.6

17.4

16.5

(6)Other・Debit card

5.9, +16.2%

・EB

12.6, +2.1%

・Housing loan related
19.5, (3.8)%

0.0

FY2021

FY2022

FY2023

FY2024

(a)

(b)

(c)

(d)

*1. Insurance and investment trust (sales commission/ trust fees), fund wrap, securities trust and fee income earned by Resona Asset Management
related trust, real estate and M&A income *3. Fees and commission from domestic exchange, account transfer, EB, debit card, etc. andfee income earned by Resona Kessai Service and Resona Card *4. Including fee income earned by Resona Asset Management*2. Asset and business succession50

HD
Consolidated

Major Fee Businesses(1) (AUM)

Balance of asset formation support products
sold to individuals

AUM income(1) Insurance(2) Investment trust (sales commission)(3) Investment trust (trust fees)(4) Fund wrap
(5) Resona Asset Management(6) Securities trust(1)Foreign currency deposits, Public bonds, etc.
(2)Insurance(3)Fund wrap *1*2(4)Investment trusts*1
Asset formation support product ratio

FY2021

FY2022

FY202352.1

51.0

52.7, +3.3%

(1)

26.2

24.9
4.4

4.0

26.1
6.3

(2)

(3)

6.2

7.1

7.0

2.86

5.2

(3)

0.65

0.62

(4)

2.19

2.03

25.5

3.5

2.2

6.7

7.4

7.0

15%

6.58
0.39
10%

3.08
0.65

5%

2.46
0%

2022/32023/32024/3

 Balance of fund wrap*1,3: Mar. 24 JPY800.3 bn, +7.5%, YoY
Of which, external group JPY90.8 bn
 Change in balance of investment trust and fund wrap :FY23 Approx. +JPY440.0 bn

4.4

 Net inflow (new purchase – withdrawal and redemption):
Approx. JPY(41.0) bn

3.9

4.1

 Number of individual customers having investment trust,fund wrap and insurance products :Mar. 24 1,000 thousands, +22 thousands, YoY

3.8

4.4

4.6

4.4

(5)

3.6

3.7

3.4

3.5

(6)

1.0

1.1

1.1

0.9

1.4

1.6

1H

2H

1H

2H

1H

2H

FY2022

14.4%

4.5

(4)

FY2021

(1)

2.71

4.1

6.7

5.95
0.42

(2)

5.1

3.8

6.08
0.52

27.2

6.9

5.2

13.4%

（JPY tn）（JPY bn）

25.8

14.0%

 Of which, NISA account holders*4: 436 thousands, +9.9%, YoY*5

FY2023 iDeCo participants*6: Mar. 24 190 thousands, +11.1%, YoY
 Securities trust (total assets in custody) : Mar. 24 JPY47.5 tn*1. Based on market value *2. Balance of asset formation support products sold to individuals / (balance of asset formation support products sold to individuals and yen deposits held byindividuals) *3. Including corporation and external group *4. NISA, Junior NISA, Cumulative NISA *5. After adjusting for the impact of
the review of aggregation standards from the end of March 2024 *6. iDeCo participants + members giving investment instructions

51

Major Fee Businesses(2) (Succession, Corporate Solution, Pension Trust)Succession related income

Corporate solutions business income(1)Private notes(1) Asset and business succession related trust(2) M&A(3) Real estate (individual)(4) Real estate (corporation)*1（JPY bn）（JPY bn）
FY2021

FY2022

FY202323.4

25.0

25.6, +2.1%(2)Commitment line, Syndicated loans, Covenants

FY2021

FY2022

FY202327.8

27.5

29.3, +6.6%
17.4

13.2
(1)

3.2

(2)

10.0

15.0

14.6
3.3

12.4

3.3

2.9

11.9
2.2

14.6

12.9

12.9

3.5

12.1
10.4

3.2

3.1

10.9

11.2

1H
2H
FY2021

(2)

(3)

2.6

1.7

2.2

1.4

14.1
9.6

1H
2H
FY2022

1H
2H
FY2023

1.9

Pension trust income

3.0

2.1
1.8

2.2

（JPY bn）

1.6

1.6

FY2021

FY2022

FY2023

12.2

12.7

12.7, +0.4%

1.6

1.7

5.5
(4)

11.7

9.5

3.3

2.9
2.3

(1)

HD
Consolidated

5.4

4.5

4.3

1H

2H
FY2021

6.5

6.4

1H

2H
FY2022*1. Excluding gains from investments in real estate funds

1H

2H
FY2023

5.7

6.5

6.1

6.6

5.9

1H

2H

1H

2H

1H

FY2021

FY20226.8

2H
FY202352

HD Consolidated
Total of Group Banks

Credit Costs and NPL
Credit costs

NPL balance and ratio (Total of group banks)

 Increasing in FY23 was mainly attributable to (i) the absence ofreversal gains (recorded in connection with the upgrading ofmajor clients in FY22) and (ii) the additional recording ofallowance for future risks英語
associated with overseas subsidiaries
FY2021

FY2022

FY2023(JPY bn)

HD consolidated(1)Unrecoverable or valueless claims(2)Risk claims(3)Special attention loans
NPL ratio(Reference) NPL ratio (HD consolidated)

FY2024
Plan

(1)

(a)

(b)

(c)

(d)

(58.7)(15.9)(35.6)(40.0)

Total of group banks(2)(61.2)(15.0)(29.6)

General reserve

(3)

(7.2)

(3.1)

(1.4)

Specific reserveand other items(4)(53.9)(11.9)(28.1)

New bankruptcy,
downward migration(5)(66.0)(45.2)(40.8)

Collection/
upward migration

(6)

12.0

33.2

12.7

Difference (1) - (2)

(7)

2.4

(0.8)

(6.0)

HL guarantee
subsidiaries

(8)

6.5

1.4

2.5

Resona Card

(9)

(1.4)

(1.7)

(2.0)

1.65%

(36.5)Net NPL ratio*3
0.35%

1.55%

1.32%

1.29%

1.34%

538.2

550.2

53.6

57.2

(JPY bn)

(1)

2%

1.57%

591.1

(3.5)
(2)

370.5

(3)

114.0

342.3

52.7

1%

371.6

0

(bps)

<Credit cost ratio>*1(Financial Reconstruction Act criteria))

HD consolidated(10)(14.8)

(3.9)

(8.4)

(9.3)

Total of group banks *2(11)(15.1)

(3.6)

(6.8)

(8.3)

150.6

166.7

2023/32024/300%2022/3(Note) Positive figures represent reversal gains*1. Credit costs / (Loans and bills discounted + acceptances and guarantees), (Simple average of the balances at the beginning and end of the term)*2. Credit costs / total credits defined under the Financial Reconstruction Act , (Simple average of the balances at the beginning and end of the term)*3. Net of collateral, guarantees and loan loss reserves53Total ofGroup Banks

Securities Portfolio

Secure flexibility to develop
our future interest income portfolio

Securities portfolio*1

英語2022/32023/3Net unrealized
gains(JPY bn, before hedging)
(c)

(a)

(b)

(c)

(d)

(1)

4,159.5

3,886.8

3,948.8

663.3

Stocks

(2)

305.9

283.8

261.6

768.7

Bonds

(3)

2,940.1

2,400.2

2,215.8(65.8)

JGBs(4)

1,137.3

645.3

539.3

(39.7)

(5)

9.3

12.8

11.9

-

(6)

(1.15)(0.78)(0.60)-(7)

1,802.8

1,754.9

1,676.4(26.0)

Other

(8)

913.3

1,202.6

1,471.4(39.5)

Foreign bonds

(9)

562.5

721.5

1,002.1(38.0)

(10)

6.2

5.8

5.5

-

Available-for-salesecurities

Average duration(years)Basis point value(BPV)
Local government andcorporate bonds

Average duration(years)Basis point value(11)(0.26)(0.30)(0.41)-

Investment trusts(Domestic)

(12)

346.8

474.1

466.9

(3.0)

(Net unrealized gains)

(13)

521.2

472.9

663.3

Bonds held tomaturity(14)

2,934.7

3,899.0

4,609.2(164.7)

JGBs

(15)

1,856.1

2,278.2

2,737.0(130.9)(BPV)

 Divest low-margin foreign and yen bonds that have been hedged⇒ Reduce negative spread risks and future hedging costs,
improve unrealized losses
 Yields in foreign bonds improved due to new investment
 Expand our interest income position in line with changes inthe environment to constantly increase interest income fromyen bonds, etc.

2024/3

 Interest on yen bonds, etc. : FY23 JPY30.9 bn, +JPY5.4 bn, YoY⇒ FY24 (plan) JPY35.5 bn, +JPY4.6 bn, YoY(1.15)[BPV of JGBs (available-for(1.09)
sale securities) after hedging]
1(0.50)(0.35) (0.24)(JPY bn)
0

22/3

22/9

23/3

23/9

24/3

Status of policy-oriented stock holdings*2
 FY23 (Act.)
Balance of listed stocks disposed (acquisition cost basis) : JPY22.2 bn,
Net gain on sale: JPY57.0 bn (HD consolidated: JPY56.5 bn)

 The previous plan aimed for a reduction of JPY44.2 bn over two
years (an achievement rate of 55%, in excess of the annual
average target)⇒ Conclude the previous plan two years ahead of schedule andlaunch a new six-year plan starting from FY24

1,000
1,397.0

 JGBs (available for sale securities, c-5 and 6, d-4) after hedging
in 2024/3

Approx.
JPY(1) tn(JPY bn)■ 3 banks(RB, SR, KO)■ After KMFG integration

500

Average duration: 9.2 year, BPV: JPY(0.24) bn, Net unrealized gains: JPY(29.2) bn(Foreign bonds are partially hedged by domestic investment trusts (bear fund) and other)

Reduce over 2/3

0

2003/3

397.8

305.9

283.8

261.6

2005/32022/32023/32024/3*1. Acquisition cost basis. The presented figures include marketable securities only
*2. Policy-oriented stocks are classified into (i) policy investment stocks and (ii) strategic investment stocks, according to the purpose of holding.
Of these, (i) policy investment stocks are targeted for reduction of the balance. All listed shares held by group banks are (i) policy investment stocks

2030/3 (Plan)

54

HD
Consolidated

Capital Adequacy Ratio

 CET1 ratio (International standard, the full enforcement of the finalized Basel 3, excluding net unrealized gains onavailable-for-sale securities) as of Mar. 31, 2024 was 9.90%
 The finalized Basel 3 was applied from the end of March 2024

Factors for changes in CET1 ratio【CET1比率の増減要因】

Capital adequacy ratio
2024/3
CET1 ratio (International std.)(Excluding net unrealized gains onavailable-for-sale securities)

Full
enforcement(Reference)
CET1 ratio (International std.)

Full
enforcement
Transitionalarrangements(Reference)CAR (Domestic std.)

Full
enforcement
Transitionalarrangements

YoY

*1

[International standard, the full enforcement(excluding net unrealized gains on available-for-sale securities)]

(1)

9.90%

(0.1)%(2)

12.10%Net
income(3)15.38%+0.8%(4)

10.34%(5)

12.85%

CET1
ratio

YoY

*1

(6)

2,639.2+226.0Stockholders' equity(7)

2,199.6+84.2

Net unrealized gains onavailable-for-sale securities

(8)

480.5

+137.9Regulatory adjustments(9)(99.8)(18.0)(10)

21,802.6+1,226.1

Credit risk weighted assets(11)

17,279.4

Market risk

(12)

266.9

Operational risk

(13)

863.1

Floor adjustment(14)3,393.1

Common Equity Tier1 capital

Risk weighted assets(full enforcement)*2• Transforming two leasing companies
into our wholly owned subsidiaries• Strengthening the capital and businessalliance with DG

10%2024/3

Inorganic
growth(0.1)%
Dividend andshare buyback(0.4)%• Increasing loans (0.4)%[International standard, the full enforcement]( JPY bn )Organic
growth(0.4)%*1. Comparison with trial calculation based on the finalization of Basel 3 as of the end of March 2023
*2. Including risk weighted assets equivalent to market value of policy-oriented stock holdings

CET1
ratio
9.90%

2023/32024/3

 Changes in Common Equity Tier1 capital(JPY bn) Stockholders' equity

+84.2

•

Net income attributable to owners of parent+158.9•

Share buyback (completed in Jun. and Dec. 2023)(25.0)•

Dividends distributed(50.9)

 Changes in risk weighted assets
 Increasing loans
 Related to the above inorganic growth+976.2+198.355

HD Consolidated
Total of Group Banks

Earnings Targets for FY2024
HD consolidated(JPY bn)

DPS
Full-year

Net income attributable to owners ofparentDifference

YoYchange

(1)

165.0

+6.1

(2)

16.0

+0.7

Full-year dividend (forecast) (4)Interim dividendCore income (actual basis) *1

(3)

160.0

YoY
changeDPS

23.0 yen +1.0 yen(5)

11.5 yen +0.5 yen+1.3

Total of group banks / Each group bank (non-consolidated basis)
Total of group banks

RB

SR

KMB

MB

(JPY bn)
Full-year

YoYchangeFull-year

YoYchangeFull-year

YoYchangeFull-year

YoYchangeFull-year

YoYchangeGross operating profit

(6)

608.0

+40.8

352.0

+25.2

118.0

+9.2

94.0

+4.4

44.0

+2.2

Operating expenses(7)(406.0)(21.2)(228.5)(16.5)(79.0)(3.0)(64.0)+0.3(34.5)(2.2)

Actual net operating profit

(8)

202.0

+19.6

123.5

+8.8

39.0

+6.2

30.0

+4.7

9.5

+0.1

(9)

51.5

(9.1)

43.0

(2.4)

6.5

(7.6)

0.5

+0.3

1.5

+0.8

Credit costs(10)(36.5)(6.9)(24.0)

(4.1)

(6.0)

(2.3)

(3.5)

+0.8

(3.0)

(1.4)

Income before income taxes

(11)

209.0

+8.1

145.0

+10.2

37.5

(1.7)

23.0

+4.1

3.5

(4.4)

Net income

(12)

149.0

+5.4

103.0

+7.1

26.0

(1.7)

17.5

+2.2

2.5

(2.1)

Net gains on stocks(including equity derivatives)*1. Net interest income from domestic loans and deposits + Interest on yen bonds, etc. + Fee income + Operating expenses,
excluding extraordinary factors (the transforming two leasing companies into our wholly owned subsidiaries (operating expenses))56

HD
Consolidated

Rationale for FY2024 Earnings Targets (YoY change)
JPY bn,approximate figures

Core income (actual basis*1) +1.3

+8.5

+4.6

Net income
attributableto ownersof parent

158.9

Interest
incomeon yenbonds, etc.

+8.1

Fee income

NII from
domestic loans
and deposits

Succession+4.4
Settlement
+2.6
AUM
+2.3

[Excluding loans to
the Japanese gov.
and others]

Averageloan balance
approx. +4％[Same as above]

Loans rate
+0bps

(25.3)
Operatingexpenses

Personnel
expenses(10.0)
Non-personnel
expenses, etc.
(15.3)
Factor of thetransforming two
leasing companies
into our wholly owned
subsidiaries(Operating expenses)

+10.1
Other
items,net
Net gains on bonds(including futures)

Net income
attributableto ownersof parent+23.0
Net gains on stocks

165.0(including equity
derivatives)(8.6)
Credit costs(4.4)

Expenses with
the integration of MB

Factor of thetransforming two
leasing companies
into our wholly owned
subsidiaries(Gross operating profit)

(1.0)

+5.2

(2.9)

(6.1),
YoY

Expenses with
the integration of MB(4.0)

FY2023(Act.)*1. Excluding extraordinary factors (impact of the joint management designated money trust in FY23,
the transforming two leasing companies into our wholly owned subsidiaries (operating expenses))

Sum of expenses with
the integration of MB
Total (5.0)

FY2024(Target)57

HD
Consolidated

Outline of Financial Results of Each Segment
英語(JPY bn)
Customer
Divisions

Personal
Banking

Corporate
Banking

Markets and
Other

KMFG

Total

FY2023

YoY
Change(JPY bn)

Gross operating profit

(1)

517.8

+40.3

Operating expense(2)(313.0)(10.1)

Actual net operating profit

(3)

204.8

+30.1

Gross operating profit

(4)

210.4

+21.7

Operating expense(5)(156.6)(6.1)

Actual net operating profit

(6)

53.8

+15.5

Gross operating profit

(7)

307.3

+18.5

Operating expense(8)(156.4)(3.9)

Actual net operating profit

(9)

150.9

+14.6

Gross operating profit(10)(24.6)(13.7)

Operating expense

(11)

(2.7)

(2.6)

Actual net operating profit(12)(26.9)(16.2)

Actualnet
operatingprofitGross operating profit

(13)

137.9

+2.0

198.2

Operating expense(14)(100.8)+0.9

Actual net operating profit

(15)

37.1

+2.9

Gross operating profit

(16)

631.2

+28.5

Operating expense(17)(416.5)(11.8)

Actual net operating profit

(18)

215.1

+16.8

Definition ofmanagement
accounting

Corporate+14.6

Markets
and
Other(16.2)

KMFG+2.9

Personal+15.5

Customer
Divisions+30.1
Next page for details

Actualnet
operatingprofit

215.1

+16.8

FY2022

FY2023

1. “Customer Divisions” and “Markets and Other” segment refer to the HD Consolidated subsidiaries, except KMFG
consolidated subsidiaries.
2. Gross operating profit of “Markets” segment includes a part of net gains/losses on stocks.
“Other” segment refers to the divisions in charge of management and business administration.

58

HD Consolidated

Outline of Financial Results of Customer Divisions
Personal Banking Segment(exclude KMFG)

Corporate Banking Segment

 Actual net operating profit : Up JPY15.5 bn, YoY Actual net operating profit : Up JPY14.6 bn, YoY(JPY bn)(JPY bn)

Gross operating profit +21.7

Asset
formation
support+0.2

OperatingRealestate+0.5

Real estate
Trust(excluding
equity Corporate related
investments) solution +1.8
Segment (0.9)+1.2interest
spreadOther
items, net(0.3)
Operatingexpenses(6.1)

Segment
interest
spread+21.3

Actualnet
operatingprofitGross operating profit +18.5+7.7
Actualnet
operatingprofit Loans(0.8)
 Deposits +22.1

53.8

 Loans(1.7)
 Deposits +9.4
Actualnet
operatingprofit

136.3

38.3

 Dividends from policyoriented stocks held +2.0
 Foreign exchange
related+2.0
 Impact of transforming
two leasing companies
into our wholly owned
subsidiaries
+1.8

+15.5

Actualnet
operatingprofit

150.9

+14.6
FY2023

FY2023

FY2022Other expenses
items,
(3.9)
net
+8.7

Gross
operatingprofitSegment
interest
spreadAssetformation
supportRealestate

210.4

147.9

24.4

3.8

Other

OperatingexpensesGrossoperatingprofitSegment
interest
spreadReal Corporate Trustestate solution related

Other

Operatingexpenses

34.2(156.6)

307.3

129.8

10.5

110.2

(156.4)FY2023

FY202226.5

30.0

FY202359

Reference Material (MMP, Business Strategies)

60

Overview of the MMP
Accelerate initiatives to realize “Retail No. 1”: The first 1,000 days of taking on corporate transformation (CX)
-From rehabilitation to taking on new challenges Adapt to changes in light of such trends as SX, DX, etc.

 Further accelerate income and cost structure reforms

Strengthening of Value Creation Capabilities

Development of Next-Generation Management Platforms

 Striving for the further development of businesses backed by
the group’s inherent strengths and creating new value Further strengthening the consolidated management of Group
companies and executing integrally reforms of management
platforms

FurtherDevelopment and
New Challenges• Strengthening our consulting capabilities in termsof both quality and quantity• Leverage the combined capabilities offered by all Resona
Group companies (customer bases and service functions)• Strengthen Group governance

Governance• Utilizing technologies and data

Co-creation andExpansion of
Value• Expanding customer bases, management resources
and functions
 Financial digital platform Inorganic investment<Value to be delivered>Ever more diverse
issues confronting
our customers
require ever moresophisticatedsolutions

Circulation ofbusinesses andassetsFacilitation

Transition ofsocial structure

Human
capital• Upgrade our mode of risk governance• Pursue the thorough practice of customer-oriented
business conduct• Realize value creation and well-being• Resonance of the three pillars(engagement, professionalism and co-creation)<Areas of business focus>• SME loans• Business and asset succession• Cashless and DX• Asset formation support• Corporate pensions• Housing loans

Intellectual
capital• Business processes: Exhaustive overhaul• Channels: Integration of face-to-face and digitalchannels• Systems: Pursuing generalization, openness
and streamlining

Transitioning from striving to qualitatively and quantitatively enhance capital to a new phase in which we can fully utilize it
61Roadmap for Securing Profit
Aim for growth in core profit that will exceed outlays associated with forward-looking investment
aimed at improving employee engagement and productivity, with our plan calling for achieving an ROE of 8%(JPY bn)

Core income [including Interest on yen bonds, etc.] +17.0

+10.0

+6.0
Net
incomeattributableto ownersof parent

160.4

FY2022(Act.)

Interest
incomefrom yenbonds, etc.

+27.0

(26.0)

Fee
incomeOperatingexpenses

NII from
Succession +8.0
domestic loans AUM+7.0
and deposits
Loans rate(6)bpsAverageloan balance+10％

Capital utilization
Additional(organic)
measures that canbe invested in
Reversal/increase
under the current in interest income
interest rateon deposits andenvironment
loans

Settlement +4.0

Corporate solution+3.0

Strategic costs(22.0)[HR (14.0)][Systems (8.0)]
Base cost (4.0)

ROE target
8%

Potential and upside
・Inorganic・Interest rate hikes etc.

(7.0)
Other items, net
Net gains on bonds(including futures)+46.0
Credit related
expenses(37.0)Net gains on stocks(12.0)+αNet
incomeattributableto ownersof parent

170.0

Upfront investment
for future growth

Sustained upward(3-year cumulative total)
momentum
Investment in HR
Promote mainly+33.0
in high-potential
Investment in IT
areas
+40.0
(80.0 ⇒ 120.0)

Credit cost ratio
FY25:11bps

FY2025(Target)62

Business for SMEs
Steadily increase our asset balance by addressing issues customers are facing in addition to leveraging a tailwind
arising from changes in the environment
Resona’s unique features
The customer baseand networks centeredon the two major
metropolitan areas

Full-line oftrust functions

External environment
Customer-relations
capabilities backed byour deep roots incommunities

Low birthrate andaging society

Climate change

Business succession

Decarbonization

DX and productivity improvement

Macroeconomics
Interest
rate hikes

Depreciationof the yen

Inflation[Trends in average balance of corporate loan]
MMP targets are expected to be almost met in FY24

(JPY tn)+6.48% Aim to raise our asset balance via the achievementof “Profitability surpassing MMP target”+4.14%+2.15%
YoY change

20.9+1.26%

21.3

19.6
18.8

18.4

Utilize capital inorganic growth fields

Balance of funds
extended tosupport capital
expenditure*1

Annualtransaction
volume of RTF*2

FY21(Act.)

FY22(Act.)

FY23(Act.)

JPY2.85 tn

JPY2.94 tn

JPY3.12 tn(+1.2%, YoY)(+3.1%, YoY)(+5.9%,YoY)

JPY0.84 tn

JPY1.01 tn

JPY1.92 tn(+20.5%, YoY)(+89.4%, YoY)

*1. Total of group banks, ending fiscal year balance*2. Retail Transition Finance

FY24(Plan)

FY25(Plan)

Dialogue with customers
Early assessment of
impacts / needs(e.g., preferences regarding
interest rates)

63

Housing Loan BusinessA high-quality portfolio equipped with profitability (high RORA)
 High sensitivity to interest rates
Upsides ofinterest rate hikes

 Possible growth in demand for
fixed-interest rate products[Composition by interest rates (existing)]

Variable rate Fixed rate
58%
42%
FY07

Variable rate Fixed rate
6％94%2024/3Net
income[Composition by interest rates (new)]FY23

Expand transactions
based on customer life
cycles97%3%

 Secure bidirectional communications with our housing loan borrowers
via the Group App•

Around 90% of housing loan customers had installed the app at the time of borrowing

Cost competitiveness androom for further
cost reductions

 Cost competitiveness backed by merits of scale Further reduction of clerical work volume via the restructuring ofloan-related systems

High quality assets withlow risk weight (RW) 2024/3 RW 9.85%*1

RORA

RWA
Resilience againstinterest rate hikes

 The final subrogation payment ratio was limited even in the aftermath ofLehman Brothers bankruptcy, when the interest rates were relatively high
FY08

 A frontrunner of housing loans
 Balance of JPY13.8 tn om Mar. 31, 2024 (+1.2%, YoY)

FY23
Factored in substantial stress thatwill affect screening interest rates

Subrogation payment ratio*2 (0.17)% (0.01)%
Average rate
2.36% 0.91%[Balance of housing loans]
14.7(JPY tn)
13.8
13.7

No.1 in Japanas of Sep. 30, 2023

2023/3(Act.)

2024/3(Act.)*1. RB, as of Mar. 31, 2024, non-default*2. Housing loans guarantee subsidiaries’ subrogation ratio x (1-collection after subrogation), residential housing loans + apartment loans

2026/3(Plan)

64

Business and Asset Succession BusinessOne-stop solutions that leverage our unique strength
as a commercial bank equipped with full-line trust banking capabilities[Period of time necessary to complete transition
to successors*1]
3 years or longer 51.9％

26.9%
Not Aroundnecessary 1 to 2
years

Around3 to 5years

13.8% 11.2%
Around 10 years
6 to 9oryears longer[Trends in the appointment ofbusiness successors by source*2]

33.0(JPY bn)
2022

2023

Taken over by a family member

37.6%

33.1%

Internal promotion

33.3%

35.5%

M&A, etc.

18.6%

20.3%

Appointed an external individual

7.1%

7.2%

Ongoing managementby the founder

3.4%

3.9%

27.8%
Unclear[Succession related income]

Commercial bank

25.0

FY22
(Act.)

25.6

FY23(Act.)

FY25(Plan)

Trust bank
1stop

Loan, M&A, Asset management

Real estate, Trust

Wide Customer Base / Network / Succession-related human resources at the Resona Group*3: Approx. 360 individuals
Boast particular strength in providing medium- to long-term assistancethat transcends the conventional scope of succession and acting as customers’ “running partner”

Succession

Open a transaction

Corporation
OwnersDevelop a relationshipvia banking transactions, etc.

Act as a “running partner” for the customers byleveraging ever stronger relationships with them

Provide business development assistance

Assist in PMI and other endeavors aimed at achieving further
business expansion, etc.

Provide assistance to asset formation and management, etc.

Support individuals’ asset formation and succession efforts,
including those aimed ensuring a smooth transition to successors*1. The third edition of Business Succession Guidelines issued by the Small and Medium Enterprise Agency*2. TEIKOKU DATABANK (2023) *3. RB, SR, KMB, MB, Resona Research Institute, Resona Corporate Investment

65

Cashless and DX Solution
Offer convenience for household finance and corporate transactions[Expansion in the cashless market
after the COVID-19 pandemic]
Cashless ratio*1
Amount handled*1[2016]
20.0%
JPY60 tn

[Settlement related income]Corporate[2023]
39.3%
JPY126 tn

Individual

Corporatetransaction[Emerging issues associated with corporate settlement] Secure conformity with the revised Electronic Book Storage
Act and the Eligible Invoice Storage System(the “Invoice System”)

Earnings
Purchase
Expenses・・Resona
B2B

B2C

Settlement
Data
Open

Householdfinance

Salary income
Consumption
Utility costs
・
・

76.5

(JPY bn)

75.4

72.5

FY22
(Act.)

FY23(Act.)

FY25(Plan)

 Digitalization support

 Assist corporate and individual customers in their transition to cashless operations via the provision of debit cards[Debit card income]# of debit card issued

Frequency of use(JPY bn)

Mar. 31, 2024 3.18 mil (+0.69 mil from Mar. 31, 2021)

High affinity with Group App
Equipped as standard
in the individual deposit account

5.9

5.1

Premium cards with high added-value

Growing needs for corporate settlement (expenses and purchase)
FY22

FY23

 Accommodate evolving needs for even more diverse settlement methods via external collaboration
 Co-creation with Digital Garage (strengthening the alliance in Dec. 2023)
Resona HD

Digital Garage

Customer base

Settlement know-how
and infrastructure

Financial DPF

Data marketing

etc.

etc.

*1. Ministry of Economy, Trade and industry

The first measureexecuted after the
full-scale launch

Non-face-to-face settlement service / Resona PayResort+ (Apr. 2024-)
CustomerEC
websiteCredit cards / Bank settlement / Convenience stores
ID (QR code) / e-money / carrier settlement /international settlement / deferred settlement, etc.

Expansion in
the scope of settlement
methods available

Going forward

Deepening of settlement
and financial businesses

Taking on a next-generation Fintech business

66

Integration of Face-to-Face and Digital Channels
Address diverse issues customers are facing by leveraging both face-to-face and digital channels

Data utilization
Coordination
between channels

Deliver new value
via the use of digital channels

 The app becomes the largest transactional channel due to its
superior convenience

Deliver added value that can be offered
only via face-to-face channels

 Robust channels and networks consisting of mannedbranches, the largest of their kind in Japan
2020/32024/3

Number ofmanned branches

830

818(1.4)%

Number of bases*3

822

666(18.9%)

Resona Group APP[Number of users by channel*1]
200

100

ATM

7.81 mil DL(+1.28 mil, YoY)

Internet(MMP target)

Branch
0
17/12

18/2

20/3

Constantly strive to optimize
Group networks

24/3 Boast relatively high profitability and enjoy expansion in
related income while contributing to operational streamlining[Comparison between app/IB users*2 and other users (Mar. 2024)]
Gross operating profit per user
Average number of products
in transactions+2.3 times• Downsizing, replacement, BinB,
the use of joint branches
among Group entities, etc.

 Shift branch mission from clerical work to the provision ofsolutions(MMP target)+1.7 times[App/IB usage ratio]

Non-personnel expenses:
JPY(1.5) bn/year

2018/32024/3

Installment time deposits (account openings)

33%

93%

Foreign currency deposits (account openings)

16%

89%

Investment trusts (purchases)

54%

83%

Overhaulbusiness processes

Time spent in direct customer
communications+30 minutes per branch employee/day*4

Integrate consulting
and procedures

Usage ratio of branch-counter tablets*550%*1 Number of ATM users in Dec. 2017: 100 (daily number of users at RB branches) *2 Individuals who use app/IB once a month or more *3 Number of manned branches – Number of joint
bases (BinB, joint branches used among Group entities, etc.) *4 Additional time spent by approx. 5,000 employees tasked with providing solutions via branch-counter services at three banks(RB, SR and KMB). This will be created via the consolidation of back-office operations, etc.
*5 Ratio of the number of transactions accommodated
via Resona Group tablets to the number of branch-counter transactions undertaken by individual customers

67

Financial Digital Platform
Co-creation through wide-ranging external collaboration that transcends the conventional framework
 Financial Digital Platform -Vision- Roll out Resona Group solutions to regional financial
institutions

Develop and expand an ecosystem that ensures
win-win relationships for all platform participants

Expand the scope ofalliance partners

 Engage in co-creation with leading companies in the field of banking
systems

Juroku FG*1
(Agreement regarding toa strategic alliance in Feb. 2024)

 Established FinBASE in tandem with IBM Japan and NTT DATA

 Act in collaboration with the above two partners in the exploration of
new participants and the pursuit of agile development, etc.

Deliver even more diverse functions
FunctionproviderSettlement
linkageAssetmanagement

API

API

Service design
CX design

Corporate
users

Date
Authorization
Business

API

API

Servicelinkage

API

・・・
API

(Jun. 2022 - )2 banks in
Mebuki FG

Bank of
Yokohama(Mar. 2021 - )(Apr. 2021 - )Hyakujushi Bank

The 77 Bank

(Feb. 2023 - )(Jan. 2023 - )

App

FW

# of Banking App DL
Mar. 2024 : 1.55 mil

Enhance the content of
the menu delivered• New transactional channels• Services in financial
and non-financial

Balance of fund wrap*3
Mar. 2024 : JPY90.8 bn(+JPY34.7 bn vs Mar. 23)

 Capital and business alliances aimed at enhancing platformfunctions

API

API

API

API

API

ResonaGroup

Regional
financial
institutions

Corporations

Local
governments

・・・

Customers

Keiyo Bank*2(+0.42 mil vs Mar. 23)

Financial Digital Platform(Digital Banking Platform)

Customers

Expand the volumeof transactions /AUM

Customers

Invite an even broader range of corporations to become users Data analysis: BrainPad Inc. (Feb. 2022-)
 Settlement: Digital Garage (strengthened alliance in Dec. 2023)
Both companies’ settlement / financial solutions are available totheir respective customers→ Considering the provision of these solutions to other customers outside
the Group (non-face-to-face corporate settlement services, etc.)
In Apr. 2024, RB, Shizuoka Bank and BrainPad together entered into an “individual
agreement” based on a basic agreement regarding the commissioning of businesses
aimed at upgrading Shizuoka Bank’s mode of data utilization.
⇒ Aim to maximize value arising from data utilization and thereby strengthen
the signatories’ capabilities to address region-specific issues*1. The App and FW will be released going forward*2. The App will be released going forward*3. Including corporation

68Asset Formation Support (1)Provide retail customers with access to the asset management know-how we have nurtured
through 60 years of corporate pension asset management
 Expand value delivered through the asset management business
Asset formation
with a history overapprox. 60 years[Balance of AUM*1]

1962
Establishedthe Asset
Management
DivisionManagement company

Resona Asset Management
2015
Established
Resona AM

2024
Approx.

1987
Approx.
JPY3 tn

Deliver value
via the combined
efforts of all
Resona Group
members2030
Approx.
JPY65 tn

JPY55 tn*2

Human resource structure capableof focusing on asset management# of staff at departments engaged in
asset management: 128 as of Mar. 31, 2024
(approx. 65% of overall headcount)

External evaluation of our asset management capabilities*3
7thconsecutive
year

3rd
consecutive
year

Commercial bank × Trust bank

RB SR KMB MB

Customer-centric business
management

Contributing to the general public’s
financial literacy (⇒p.38)

Promotion of stewardship activities

Sustainable growth for Resona andimprovement in corporate value(JPY bn)

744.2
Convenientasset
administration
functions

Low level ofnecessary
costs

Smartphone-based assistance to help
customers take the first step
⇒ Tsumitate Box (RB,SR,KMB)

2023/3800.32024/31,400.02026/3(Plan)[Users of funded investment trusts]

Deliver app-based proposals on savings-type
investment and enable users to complete
purchases on smartphones

R&I Fund Grand Prize ： https://www.r-i.co.jp/investment/fund_award/index.html (Japanese)
Mercer MPA (Japan) Award ： https://www.mercer.co.jp/newsroom/mpa-awards.html (Japanese)

Toward the smooth realization of investment chain functions[Balance of FW*4]

Boasting built-in features designed toappeal to bank customers⇒ Resona Fund Wrap
Discretionary
contracts withprofessionals
executing a stableasset management
approach

16 million individual
customers and 500,000
corporate customers(Thousands)

240

200
2023/32024/31,000

2026/3(Plan)[Balance of investment trust,FW and insurance products](JPY tn)

6.1

2023/3(Act.)

7.5
6.8

2024/3(Act.)*1. Including AUM held by Resona’s precursors: Daiwa Bank, Asahi Trust Bank, Daiwa Trust Bank and Resona Trust Bank
*2. Total balance of assets managed under discretionary investment contracts and investment trust assets for which we act as an asset manager
as of Mar. 31, 2024 *3. Including products provided by Resona Bank for pension asset management *4. Including corporation and external group2026/3(Plan)

69

Asset Formation Support (2) [Corporate pension]
Deliver value backed by Resona’s unique strength as a commercial bankequipped with full-line trust banking and pension management capabilities
Issues confronting business corporations

Issues confronting individual customers
Building national
strength throughasset management

Ongoing improvement in wages,
the widespread trend toward the upwardrevision of retirement age

The advance of the ultra-aging society

Assistance to employees’ asset
formation endeavors

Anxiety regarding the public pension
systems and the lack of relevant knowledge

Realization of well-being

Autonomous asset formation

Resona’s strength
Commercial bank × Trust bank

Deliver value to corporate customers

 Consulting on pension plans

Deliver value to individual customers

 Comprehensive advice on asset formation

 Deliver proposals to customers ranging from SMEs to large
corporations based on issues they are confronting (upward revisionsof wages and retirement age) Strengthen trust functions by training 30,000 employees Enable branch employees to enhance their ability to deliver proposals
and conclude deals by providing training (ranging from introductory
programs for newly appointed individuals to executive programs), etc.

 Seminars for employees of business corporations who entrust theirpension assets to us
 Solutions delivered by dedicated sales teams tasked with visiting
corporate customers’ workplaces Enhancement of functions afforded via and the lineup ofasset formation products FW, Tsumitate Box, etc.(⇒p.69)[Balance of corporate pension-related assets](JPY tn)

Number of enrollees:
Approx. 1.2 million

5.6

10

[iDeCo participants*1](Thousands)

6.5

153
2023/32024/32033/3(Target)*1. iDeCo participants + members giving investment instructions, total of group banks

2022/31712023/3190

2024/370

International Business
Help customers align with changes in the business environment via the use of our overseas network
 Resona Group employees stationed at 10 overseas bases to cover theentire Asia region and the U.S.
 Provide a wide range of consultations concerning overseas expansion,
financing, etc.

 Provide solutions via local subsidiaries
 Bank Resona Perdania (Indonesia)
 Boasting a business track record spanning morethan 65 years and full-fledged banking functions
serving locals

 Resona Merchant Bank Asia (Singapore) Lending, M&A assistance, consulting, etc. in
ASEAN, Hong Kong and India
BMO Bank N.A.

 Extend support via representative offices
and partner banks
 Provide information to customers in line with theirneeds in connection with local laws, regulations,tax systems, business customs, etc.
 Plans call for newly establishing representative
offices in two locations in 2024
 Hanoi Representative Office Los Angeles Representative Office

Overseas representative offices
Resona Merchant Bank Asia
Bank Resona Perdania
Resona Indonesia FinancePartner banks, etc.
Offices with Resona Group employees
As of Mar. 31, 2024

71

Analysis of Current Status with the Aim of Improving Corporate Value PBR is currently on a recovery track Aim for improvement in corporate value byboth raising ROE and reducing capital costs[Trends in PBR]

0.90

0.84

0.79

0.62

0.56

ROE

0.63
0.54

[ RORA ×
Leverage following risk adjustment ]

0.50

0.47
0.34

PBR

＝

Capital costs[ Cost of shareholders’ equity– The expected growth rate ]2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/32023/32024/3 The current MMP aims for a target ROE of 8% through the strengthening of the RAF and proactive BS management
 Previous MMP period: Profit/loss conditions were negatively impacted by such factors as the radical expansion of BS, growth in the balance of assets
with low utilization and the recording of credit costs for major clients as well as costs for measures to improve the soundness of our foreign
bond portfolio.
 Current MMP period: Aim to improve risk return through more proactive engagement in risk-taking endeavors
MMP target: 8%[Trends in ROE]
ROE
(stockholders’ 8.9%
equity)

7.6%
ROE
(TSE
standard)

6.8%

Net income

×

6.5%

5.7%

6.0%

4.6%

FY20

FY21

Previous
MMP

FY22

FY23

Current
MMP*1. Calculated based on the CAPM (an estimate formulated independently by the Company)

Total assets(In terms ofaccounting)

RWA*2

ROE

＝

FY19

8.9%

＝

0.7%

×

11.9 times

60.5 tn

FY20

6.8%

＝

0.6%

×

11.3 times

73.6 tn

FY21

5.6%

＝

0.5%

×

10.7 times

78.1 tn

FY22

7.6%

＝

0.7%

×

9.9 times

74.8 tn

FY23

7.2%

=

0.7%

×

9.7 times

76.1 tn

7.2%

Total
shareholders’ equity

RWA*2

5.6%

7.3%

FY19

Leverage following
risk adjustment

RORA

Defined as a levelexceeding capital costs*1*2. Based on the finalization of Basel 3

72

Reference Material (Other)73

Resona Group at a Glance Financial services group with a customer base of 16 mil individuals and 0.5 mil corporations and a full line of trust functions
 Extensive channel network centered on the Tokyo metropolitan area and Kansai region

Customer base and business scale

Corporate structure(As of April 1, 2024)[Individual customers][Corporate clients]

16 mil

0.5 mil[Deposits][Loans]

JPY63 tn

JPY42 tn

Prime Market of TSE

ResonaBank

SaitamaResonaBank

KansaiMirai
BankMinatoBank

Market share*1

Network position(End of March 2024)

Number of
App DL
9.37 milNumber ofmannedbranch offices
3

Kansairegion506

8
85(End of March 2024)[Loans]
RB+SR

818

1

[Deposits]

Tokyo
Metropolitan
area
287

4.2%

Tokyo

4.1%

Kanagawa

KMB+MB

GDP #1

4.6%

GDP #4

8.6%

46.4%

Saitama

43.7%

GDP #5

22.7%

Osaka

24.2%

GDP #2

18.6%

Hyogo

16.9%

Shiga

*1. Total of group banks, market share based on deposits, and loans and bills discounted by prefecture (domestically licensed banks from BOJ)

31.0%

19.4%

GDP #6Per capita
income #8

74

Resona Group’s Feature at a Glance
A unique position that combines three strengths
The largest retail-focused bank with full-line trust capabilities in Japan1

The strengths of a trust bank

 Full range of trust and real estate functions
within the bank

Full-line
trust capabilities3

 Expertise in pension fund management

The strengths of a regional bank
 Close connection and familiarity withthe local community Central role in regional revitalization

Advancedcapabilities
and economies
of scale

Retail businessfoundation
focused on
the local community

2 The strengths of a mega bank
 Strong customer base and network[Loan portfolio*1]

 Advanced capabilities to meet
diverse needs
 Cost competitiveness througheconomies of scale

Won prizes three times
2020, 2021 and 2023

*1. Source : Financial systements from each company (as of Sep. 2023 Resona: Total of Group banks (RB + SR + KMB + MB);*3 megabank groups (MUFG Bank + Mitsubishi UFJ Trust and Banking; Mizuho Bank + Mizuho Trust & Banking;and Sumitomo Mitsui Banking Corporation) Top 10 regional banking groups (Fukuoka FG, Concordia FG, Mebuki FG,
Chiba Bank, Hokuhoku FG, Shizuoka FG, Hachijuni Bank, Nishi-Nippon FHD, Kyushu FG, North Pacific Bank).
Figures are based on financial statements from each company in Sep. 2023.

Other

20.8%

Loans to
SMEs

37.7%

Loans toindividuals

41.2%

31.8%
35.9%

40.9%
41.3%
Resona17.8%
Average for3 megabankgroups32.2%
Average for
top 10regional banks

75

Strengthen the Consolidated Management of the Group
Leverage the combined capabilities offered by all Resona Group companies⇒ Improve the corporate value of Group companies～ 2024/3

2024/4 ～KMFG functions contributed to
speedy post-merger integration (PMI)

Shifting to a new organizational structure
to facilitate fresh growth

Resona Holdings

Resona Holdings

Prime Market of TSE

Prime Market of TSE

100%
Kansai Mirai Financial Group
100%

100%

100%
Saitama Resona

ResonaKansai Mirai

100%
Minato KMFG leads the way in the start of the largest regional banking
group in the Kansai area
 Rollout of Group products and services ⇒ Realize top-line synergies
 Unify the mode of back-office operations throughout the Group whilereforming branch-counter infrastructure ⇒ Realize cost synergies

 Complete the integration of KMB’s back-office operations and systems
within a one-and-a-half-year time frame Restructure the branch networks of KMB and MB via the use of the
branch-in-branch (BinB) method, etc.
 Invigorate the interaction of human resources across the Group and remove
boundaries among them

(JPY bn)

Net
incomeContribution
to group
incomeExpansion of contribution to group income
22.2
17.0
11.7

21.9

11.2

5.8

FY18*1
FY19
FY20
FY21
FY22
Became a wholly owned subsidiary in Apr. 2021

*1. Excluding gain from negative goodwill

Saitama Resona

100%
Kansai Mirai

100%
Minato Strengthen Group governance Upgrade on a consolidated management of Group companies
 Facilitate speedier and simple decision making
 Empower each subsidiary bank to execute effective growthstrategies
 Toward the establishment of a “one-platform, multiregional strategy”
Deliver value optimized to suitthe characteristics of thecustomers and regions we serve
 Each Group bank pursues
individual strategies

Deliver value universally offeredby all Group companies
 Real estate, pension
management, trust banking,apps, DX, data utilization, etc.

The Group’s universal platforms～Overwhelming cost competitiveness～

3.9

6.0 2.0

Resona100%

FY23

 Upgrading governance systems / unifying indirect departments andsystems, etc.

76Resona Group's Conceptual Structure
The Resona Group's conceptual Structure expresses how we contribute society (Purpose), what we aim to be in society(Corpotrate Mission), what we aspire to be (Long-term Vision), and how we act (Resona Way / Resona Standards).
The Resona Group aims at
becoming a true “financial services
group full of creativity.”
Towards this goal,
the Resona Group will:
In a world that keeps changing,
we're here to provide peace of mind
so that we can welcome the futurewith hope and confidence.

1) live up to customers’
expectations,To achieve this,
we think beyond the framework of financeto address different challenges
alongside each region.

3) implement transparent
management, and

At Resona,
we persistently strive towards reform andcreativity
for a brighter future- one that is hopeful and reassuring,
just as it is exciting.

Retail No. 1
The “Solution Group” most supported
by customers and regional societies
as it walks with them intoa brighter future together

2) renovate its organization,4) develop further with
regional societies.

Resona WAY
Customers and Resona
Shareholders and Resona
Society and Resona
Employees and Resona

Resona STANDARD
For Customers
Taking on
the Challenge of Reform
Sincere and Transparent Action
Responsible Business Conduct
Realizing Job Fulfillment
For Shareholders
Trust of Society

77Resona Group’s Brand Identity
The Resona Group’s corporate name was derived fromthe Latin word (resonus) meaning “resonate” or “resound” in English.
We attach great importance to customers' voice.
By adopting the corporate name Resona, we want to express our desire to build
stronger ties with our customers by "resonating" or "resounding" with them.

Group Logo expresses
the resonancebetween the “R” in Resona andthe “R” in the Group’s key word
“Regional.”

ResonaRegional

The two "Rs" insidea perfect circle to express
a sense of security and trust.

Green suggests"gentleness" and "transparency"
andorange creates a sense of"familiarity" and "warmth."78

Measures to Build Multifaceted Business Relationships
with Customers

Total of
Two Banks(RB, SR)

Visible progress has been made through the increase in the number of “Resona Loyal Customers”
Number of Customers

Customer segments based on
the depth of transactions withResona Group banks(thousands)

2019/32024/3Top-line
Income Per
Customer *ChangeAvg. # of
Products
Cross-soldIncrease life-time profits by upgrading
customer segments and by increasing
the number of products[YoY change]

Premier
AUM or Apartment loan
exceeding JPY50 million

(1)

55.8

73.6

+ 17.867.4

7.86

Number・ ・of・Products・ ・ ・ ・ ・ Sold
・・・

+0.08

Housing Loan
(2)
With housing loan for own home

523.5

543.4

+ 19.824.1

・・・・・・・・・・・

5.00
+0.06

・・・・・・・・・・・(3)

AUM exceeding JPY10 million

683.7

847.1

+ 163.4

6.8

4.79(0.00)

Potential I(4)
AUM exceeding JPY5 million

723.0

809.0

+ 85.92.2

3.64(0.00)

Potential II
AUM below JPY 5 million/
3 or more products sold(5)

Resona Loyal Customers (RLCs)(6)

4,553.1

4,733.2+ 180.0

＊

1

4.13

Upgrade Segments

Asset Management

・・・・・・・・・・・

Profit Matrix
by Customer Segment
and Number of・ ・ ・ ・ ・ Products・ ・ ・ ・ ・ ・ sold
(Illustrative)+0.03

6,539.3

7,006.4+ 467.1

4.3

4.26
+0.03

Lower
ProfitPotential III
AUM below JPY 5 million/
2 or fewer products soldHigherProfit(7)

4,661.5

4,014.0(647.4)0.1

・・・・・・・・・・・

1.67
+0.00

* Indexed to average top-line income per client for Potential II segment = 1

79

Basic Concepts on the Exercise of Voting Rights of Policy-Oriented Stocks
 Resona group has established the “Policy for the Voting Right Exercise Standards of Holding Policy-Oriented Stocks”
in relation to exercise the voting rights of policy-oriented stocks. We have built a process to individually judge and verify
the approval or disapproval of all proposals.
 Fundamental concepts on the exercise of voting rights (Described in “Standards for the Exercise of Voting Rights of Policy-Oriented Stocks”)
The Resona Group will exercise voting rights of policy-oriented stocks based on the following policy:
1. Irrespective of interests of transactions with clients, make an effort to vote yes or no on an individual basis from the viewpoint of sustainably
improving corporate value;
2. Not to exercise voting rights in a manner to resolve certain political or social problems; and3. If any scandal or an anti social act is committed by a company or corporate manager, etc., exercise voting rights with the intention ofcontributing to the improvement of corporate governance.
 Guidelines for the Exercise of Voting Rights
With the aim of exercising its voting rights in an appropriate and efficient manner, the Group will abide by the following guidelines:
1. Base voting judgments on the following points:
a. whether the way the vote is cast helps the Company and/or the investee achieve sustainable andlong-term growth in corporate value;b. whether the way the vote is cast is consistent with the overall interest of shareholders.
2. In particular, before casting a yes or no vote on one of the following types of agenda items, give due consideration to whether voting
contributes to growth in the investee’s corporate value:
a. shareholder proposals;b. introduction or renewal of anti-takeover measures;c. agenda items proposed by a corporation that was found to be implicated in a scandal or an antisocial act;
d. approval of financial statements not backed by an unqualified opinion issued by the accounting auditor;e. dismissal of directors, accounting auditors, etc.
3. When a vote is cast in opposition to the Company's intention, the Board of Directors will review the status of the exercise of voting rights toconfirm whether these guidelines were fully observed. The Company will also strive to increase the sophistication of its exercise of voting
rights by, for example, revising these guidelines.

80

0%

(Balance sheet amount)

Services

Real estate

Other financial services

Insurance

Securities, commodities

Resona Bank

Banking

RetailWholesale

Information, telecommunication

Warehouse, transportation

25%

Air transport

Marine transport

Land transport

Utilities

Other manufacturing

Precision instruments

Transport equipments

Electronics

Machinery

Metal products

Non-metal products

Iron and steel

Glass and pottery

Rubber products

Oil and petrochemical product

Pharmaceutical productChemical product

Pulp and paper

Textile product

Food productConstruction

MiningFishery, agriculture and forestry

Stocks Held by Industry (March 31, 2024)
RB

TOPIX

20%

15%

10%

5%

81

Business Results by Major Group Business Segments
Management accounting by major group business lines (FY2023)(JPY bn, %)Profitability

Resona Group
Business Segments

Soundness

Net profit
after adeductionof coston capital

Risk-adjusted
returnon capital

Cost toincome
ratio

RVA*1

RAROC

OHR

Net operating profit after a deduction of credit cost

Actual net operating profit
Internal
CAR
YoY
ChangeCustomer Divisions

(1)

52.4

14.7%

60.4%

9.3% 174.2

Personal Banking

(2)

34.8

29.2%

74.4%

10.1%

Corporate Banking (3)

17.5

12.0%

Markets(4)(31.8)

KMFG

(5)

(6)

Total

Credit costs

YoY
ChangeGross operating

OperatingprofitexpenseYoY
ChangeYoY
ChangeYoY
Change

+12.8

204.8

+30.1

517.8

+40.3

(313.0)(10.1) (30.6)(17.3)

53.8

+17.5

53.8

+15.5

210.4

+21.7

(156.6)

(6.1)

(0.0)

+2.0

50.8%

9.1% 120.3

(4.7)

150.9

+14.6

307.3

+18.5

(156.4)(3.9) (30.5)(19.3)(34.1)%(36.0)%

16.7%(24.4)(17.9)(24.4)(17.9)(17.9)(16.3)

(6.4)

(1.6)

-

-

(20.1)

6.2%

73.0%

10.4%

31.6

+0.7

37.1

+2.9

137.9

+2.0

(100.8)

+0.9

(5.5)

(2.1)

(42.0)

8.3%

65.9%

9.8% 179.4

(2.8)

215.1

+16.8

631.2

+28.5

(416.5)(11.8) (35.6)(19.7)*1. RVA: Resona Value Added (Net profit after a deduction of cost on internally allocated capital)

82

Consolidated Subsidiaries and Affiliated Companies (1)Major consolidated domestic subsidiaries (excluding group banks)
NameLine of businessResona Guarantee(1)

Kansai Mirai Guarantee(2)Credit guarantee(Mainly mortgage loan)

Japan's highest class ofresidential housing loan
guarantee balances(JPY bn）
Capital contribution ratio

Fiscal year

Net
incomeYoYchangeResona Holdings 100%FY23(Mar.31 2024)

10.7

(0.2)

Kansai Mirai Bank 100%FY23(Mar.31 2024)

0.8

(0.1)

Kansai Mirai Bank 100%FY23(Mar.31 2024)

1.1

(0.3)

Minato Bank 100%FY23(Mar.31 2024)

0.3

(0.7)

Kansai Sogo Shinyo(3)Minato Guarantee(4)Resona Card(5)

Credit card
Credit guarantee

1.5 million card menbers

Resona Holdings 77.5%
Credit Saison 22.4%

FY23(Mar.31 2024)

1.2

(0.1)

Minato Card

(6)

Credit card

Provide local customers withsettlement solutions

Minato Bank 100%FY23(Mar.31 2024)

0.0

(1.0)

Resona Kessai Service(7)

Collection service
Factoring

Collection services with50 million cases annually

FY23(Mar.31 2024)

0.5

(0.0)

Resona Research Institute(8)

Business consulting
service

Management consulting with
1,100 project annually

Resona Holdings 100%FY23(Mar.31 2024)

0.3

+0.0

Resona Capital(9)

Venture capital

IPO support, SME business succession,
re-growth support

Resona Holdings 100%FY23(Mar.31 2024)

0.1

+0.0

Minato Capital(10)

Operation and managementof investment funds

Support for agriculture and tourism
related business, growing company,
business succession

Minato Bank 100%FY23(Mar.31 2024)

0.0

(0.0)

Resona Innovation Partners(11)

Corporate venture capital

Facilitate the creation of novel financial
services through investment
in venture startups

Resona Holdings 100%FY23(Mar.31 2024)(0.0)

Resona Corporate Investment(12)

Private equity

SME business succession support
through share acquisition

Resona Group 100%FY23(Mar.31 2024)

0.0

(0.0)

Resona Business Service(13)

Back office work
Employment agency

Practices quick and accurate operations

Resona Holdings 100%FY23(Mar.31 2024)

0.0

(0.0)

Resona Asset Management(14)

Investment managementbusiness

Business started in Sep. 2015 utilizing 50
years of RB pension management expertiseResona Holdings 100%FY23(Mar.31 2024)

3.5

+0.3

*1. As of April 1, 2024

Resona Holdings 100%
[Resona Holdings 80%,
Digital Garage 20%*1]

83

Consolidated Subsidiaries and Affiliated Companies (2)Major consolidated domestic subsidiaries (excluding group banks)(Continued)
NameLine of businessShutoken Leasing(15)

DFL Lease(16)

Kansai Mirai Leasing(17)

Made consolidated subsidiaries
in Jan. 2024
Further strengthen collaboration with otherGroup companies⇒ "Renamed Resona Leasing"via merger on Apr. 1, 2024

(JPY bn）
Capital contribution ratio

Fiscal year

Net
incomeYoYchangeResona Holdings 100%FY23(Mar.31 2024)

1.9

+0.6

Resona Holdings 100%FY23(Mar.31 2024)

0.5

(0.0)

Kansai Mirai Bank 100%FY23(Mar.31 2024)

0.3

+0.2

Minato Bank 100%FY23(Mar.31 2024)

0.1

+0.0

Leasing business
Providing regional customers with solutions
utilizing leasing functions

Minato Leasing(18)

Resona Mi Rise

(19)

Bank assistance business

Providing opportunities for a wide range ofhuman resources to thrive

Resona Group 100%
[Resona Holdings 100%* 1]

FY23(Mar.31 2024)

0.0

+0.0

Regional Design Laboratory of
Saitama(20)

Assist in the resolution ofregion-specific issues

Driving in line with the development of "wide,
deep, and long" customers, involving local
communities

Saitama Resona Bank 100%FY23(Mar.31 2024)

0.0

+0.1

Mirai Reenal Partners(21)

Consulting
Crowdfunding

Solving customer problems together

Kansai Mirai Financial Group 100%
[Kansai Mirai Bank 65%,
Minato Bank 35%*1]

FY23(Mar.31 2024)

(0.0)

(0.0)

Resona Digital Hub(22)

Assist in
the promotion of DX

Support for driving-type DX toward
the "vision" of customers

Resona Holdings 93.3%

FY23(Mar.31 2024)

(0.2)

+0.0

FinBASE(23)

Financial digitalplatform

Promoting an open platform for financial
services

Resona Holdings 80%

FY23(Mar.31 2024)

0.0

(0.0)

Loco Door(24)

Assist in the regional
vitalization

Achieving regional vitalization by combining
education and agriculture

Resona Holdings 100%FY23(Mar.31 2024)

(0.0)

(0.0)

21.7

(1.3)

Total

*1. As of April 1, 2024

84

Consolidated Subsidiaries and Affiliated Companies (3)Major consolidated overseas subsidiaries
Name
P.T. Bank Resona Perdania(JPY bn）
Line of business(25)

Banking business（Indonesia）

Oldest Japan-affiliated bank(26)

Leasing business(Indonesia)

in Indonesia

P.T. Resona Indonesia FinanceResona Merchant Bank Asia

(27)

Finance, M&A(Singapore)

Became consolidated subsidiary Jul. 2017;
direct financing and M&A brokerage, etc.

Capital contribution ratio

Fiscal year

Net
incomeYoYchangeResona Group 48.4%(Effective control approach）

FY'23(Dec.31 2023)

(2.2)

(2.5)

Resona Ｇroup 100%

FY'23
(Dec.31 2023)

(0.1)

(0.0)

Resona Ｇroup 100%

FY'23
(Dec.31 2023)

0.1

(0.0)

(2.2)

(2.6)

Total

Major affiliated companies accounted for by the equity method
NameLine of business

Custody Bank of Japan(28)

NTT Data Sofia(29)

Resona Digital I

(30)

DACS

(31)

Trust banking business(Mainly asset administration)

IT system development

One of the largest asset size in Japan

Became affiliated company accounted forby the equity method in Oct. 2017;
responsible for the system development of
the group
Became affiliated company accounted forby the equity method in Jul. 2022;
DX support for Resona group and our customers

Capital contribution ratio

Fiscal year

Net
incomeYoYchangeResona Group 16.6%
Sumitomo Mitsui Trust HD 33.3%

FY23(Mar.31 2024)

0.3

(0.1)

Resona Holdings 15%
NTT Data 85%

FY23(Mar.31 2024)

0.3

+0.1

Resona Holdings 49%
IBM Japan 51%

FY'23(Dec.31 2023)

0.2

+0.1

Resona Holdings 30%
NTT Data 70%

FY23(Mar.31 2024)

0.0

(0.0)

1.0

+0.0

Total

Established on April 1, 2024, as a consolidated subsidiary
Name
Resona Real Estate
Asset Management

Line of business(32)

Real estate
investment advisory

Tasked with the real estate asset management business of the Resona Group*1. Fiscal year end of the overseas subsidiaries (25)-(27) and Resona Digital I (30) are December 31. HD's consolidated business results reflect
the accounts of these subsidiaries settled on Dec. 31.

Capital contribution
ratio
Resona Bank 100%85

Total of
Two Banks(RB, SR)

Maturity Ladder of Loan and Deposit (Domestic Operation)
Loans and bills discounted

Deposits[End of March 2023][End of March 2023]
Within 6M

6 to 12M

Fixed rate

(1)

0.9%

0.8%

Prime rate-based

(2)

41.4%

Market rate-based

(3)

Total

(4)

Loans maturing
within 1 year

1 to 3Y
6.5%

Over 3Y

Within 6M

1 to 3Y

Over 3Y

Total

Liquid deposits

(1)

32.7%

2.6%

10.4%

36.1%

82.0%

0.0%

41.4%

Time deposits

(2)

8.6%

5.2%

3.3%

0.7%

17.9%

34.0%

2.1%

36.1%

Total

(3)

41.3%

7.8%

13.7%

36.9%

100.0%

76.4%

3.0%

13.9%

100.0%

79.4%[End of March 2024][End of March 2024]
Within 6M

6 to 12M

Fixed rate

(5)

0.8%

0.9%

Prime rate-based

(6)

40.5%

Market rate-based

(7)

Total

(8)

Loans maturing
within 1 year

1 to 3Y
8.0%

Over 3Y

Within 6M

6 to 12M

1 to 3Y

Over 3Y

Total

22.6%

Liquid deposits

(4)

32.7%

2.6%

10.6%

36.8%

82.9%

0.0%

40.6%

Time deposits

(5)

8.4%

4.7%

2.9%

0.8%

17.0%

34.9%

1.7%

36.7%

Total

(6)

41.2%

7.3%

13.6%

37.7%

100.0%

76.3%

2.7%

8.0%

12.8%

Total

12.8%

100.0%

79.0%[Change in FY2023][Change in FY2023]
Within 6M

6 to 12M

Fixed rate

(9)(0.1)%+0.0%

Prime rate-based(10)(0.8)%

Market rate-based

(11)

Total

(12)

Loans maturing
within 1 year

6 to 12M

22.3%

6.5%

13.9%

Total

1 to 3Y+1.4%

Over 3Y

Within 6M

6 to 12M

1 to 3Y

Over 3Y

Total

+0.2%

Liquid deposits(7)(0.0)%

+0.0%

+0.1%

+0.6%

+0.8%

+0.0%

(0.8)%

Time deposits(8)(0.1)%(0.5)%(0.3)%+0.1%(0.8)%+0.9%(0.3)%

+0.5%

Total

(9)

(0.1)%(0.4)%(0.1)%+0.7%-(0.1)%(0.2)%+1.4%(1.0)%

Total(1.0)%-(0.3)%

86Migrations of Borrowers (1H of FY2023)

RB Exposure amount basis*1

End of September 2023

End of March 2023

Normal

Other
Watch

Special Potentially Effectively
Bankrupt
Attention Bankrupt Bankrupt

Other

Collection,
Repayments

Assignments,
Sale

UpwardMigration

Downward
Migration

Normal

98.2%

1.0%

0.0%

0.0%

0.0%

0.0%

0.7%

0.7%

0.0%

-

1.1%

Other Watch

12.7%

78.3%

1.7%

4.4%

0.1%

0.1%

2.8%

2.8%

0.0%

12.7%

6.2%

SpecialAttention

4.8%

2.2%

87.3%

4.6%

0.3%

0.0%

0.9%

0.9%

0.0%

7.0%

4.9%

Potentially
Bankrupt

0.6%

4.0%

0.9%

85.2%

4.7%

1.4%

3.4%

3.4%

0.0%

5.4%

6.1%

Effectively
Bankrupt

0.2%

0.5%

0.0%

0.9%

80.5%

11.4%

6.4%

5.6%

0.8%

1.7%

11.4%

Bankrupt

0.0%

0.0%

0.0%

1.5%

0.0%

89.0%

9.5%

1.0%

8.5%

1.5%

-

*1. Above table shows how a borrower belonging to a particular borrower category as of the end of March 2023 migrated to a new category as of the end of September 2023.
Percentage points are calculated based on exposure amounts as of the end of March 2023.
New loans extended, loans partially collected or written-off(including partial direct written-off) during the period are not taken into account.
"Other" as of the end of September 2023 refers to those exposures removed from the balance sheet due to collection, repayments,
assignments or sale of claims.

87Migrations of Borrowers (2H of FY2023)

RB Exposure amount basis*1

End of March 2024

End of September 2023

Normal

Other
Watch

Special Potentially Effectively
Bankrupt
Attention Bankrupt Bankrupt

Other

Collection,
Repayments

Assignments,
Sale

UpwardMigration

Downward
Migration

Normal

99.1%

0.4%

0.0%

0.0%

0.0%

0.0%

0.4%

0.4%

0.0%

-

0.4%

Other Watch

6.3%

87.6%

0.9%

1.9%

0.1%

0.1%

3.1%

3.1%

0.0%

6.3%

3.0%

SpecialAttention

3.2%

6.8%

83.8%

5.3%

0.5%

0.1%

0.3%

0.3%

0.0%

10.0%

5.8%

Potentially
Bankrupt

1.0%

2.3%

0.9%

88.2%

3.2%

0.2%

4.3%

2.5%

1.8%

4.2%

3.3%

Effectively
Bankrupt

0.2%

0.4%

0.0%

5.3%

72.0%

9.1%

13.0%

6.4%

6.6%

5.9%

9.1%

Bankrupt

0.0%

0.0%

0.0%

1.3%

0.0%

90.6%

8.1%

3.0%

5.1%

1.3%

-

*1. Above table shows how a borrower belonging to a particular borrower category as of the end of September 2023 migrated to a new category as of the end of March 2024.
Percentage points are calculated based on exposure amounts as of the end of September 2023.
New loans extended, loans partially collected or written-off(including partial direct written-off) during the period are not taken into account.
"Other" as of the end of March 2024 refers to those exposures removed from the balance sheet due to collection, repayments,
assignments or sale of claims.

88

HD
Consolidated

Swap Positions by Remaining Periods
 Notional amounts of interest rate swaps (deferred hedge accounting applicable) by remaining period(JPY bn)
Mar. 31, 2024
Within1 yearMar. 31, 2023

1 to 5years

Over
5 years

Total

Within1 year1 to 5years

Over
5 years

Total

Receive fixed rate/
Pay floating rate

(1)

330.0

1,124.1

1,020.0

2,474.1

400.0

930.1

600.0

1,930.1

Receive floating rate/
Pay fixed rate

(2)

178.7

329.5

45.0

553.3

51.7

478.5

282.4

812.7

Net position to receive
fixed rate

(3)

151.2

794.5

975.0

1,920.7

348.2

451.5

317.5

1,117.3

89Responses to the Ongoing International Discussion overFurther Tightening of Financial Regulation
Major items of financial regulation being discussed internationally / Impact on Resona
 Regulations based on the finalized Basel 3 took effect from the closure of FY2023 operating results. However, these regulations
are currently considered to have no major impact on the Company’s operations.
Major regulatory items

Outline of regulation

Important updates

Finalization of Basel 3• Review of Standardized
Approach (SA) (Credit
and operational risks)

Reviewing credit risk calculation method to enhance the risks
sensitivity and improve comparability. Reviewing operationalrisk calculation method to reflect loss data.

• Review of IRB approach

New capital floor rule requiring a reference to the SA(final output floor calibration : 72.5%).

• Impact of Basel 3 finalization has already been factored into eachstrategy.
• Common Equity Tier 1 (CET1) capital ratio based on finalized
Basel 3 (excluding net unrealized gains on available-for-salesecurities) is 9.90%• Capital floor based on SA

Liquidity regulations(LCR/NSFR)[LCR] Requiring banks to hold high-quality liquid assets to
prepare for significant outflow of funds under a severe stress.
[NSFR] Requiring banks to hold certain capital and liabilities forthe risk of having illiquid assets.

• Minimum requirements are applicable to banks subject tothe International standard.

Leverage ratio

Introduced to complement capital adequacy ratio requirements.
Tier 1 capital as a numerator.
Exposure amount, not RWA, to be a denominator .

IRRBB(Interest rate risk inthe banking book)To strengthen the interest rate risk management by measuring
the decline in economic value of equity (⊿EVE) and net interest
income (⊿NII) under certain interest rate shock scenarios.

• Pillar 2 regulation. The threshold of ⊿EVE is set at within 15% ofTier 1 capital (in case of domestic standard banks, within 20% of
Total capital), the figures are within the threshold.

Various capital buffers

Capital buffer requirements include capital conservation buffer,counter-cyclical buffer and SIBs’ buffer. TLAC requires banks tohold additional capacity to absorb loss.

• Capital buffers are applicable to G-SIBs/D-SIBs, and banks
subject to the International standard. TLAC is applicable to
G-SIBs and other.

The announcement of euro-yen TIBOR will be terminated at
the end of Dec. 2024

• In anticipation of this move, we will promote the phased switchover ofstandard interest rates for lending and other assets.

G-SIBs/D-SIBs,TLAC
Response to the end ofannouncement of euro/yen
TIBOR

90

《Companies capitalized
at 10M-100M(JPY)》

0%

200%
100%

90%

180%
90%
90%
180%
180%

80%
160%
80%

148.4%160%
80%
160%

70%
140%
70%
70%
140%

133.8% 140%

120%
60%
60%
120%
120%

131.7%

50%
100%
50%

115.7%

43.6%

40%

31.7%
80%
40%

30%
30%
60%

28.2%

20%

25.7% 20%
40%
21.6%

10%
10%
20%

29.4%

Interest-bearing liabilities / Total assets

0%0%*1. Financial Statements Statistics of Corporation (4 quarters moving average)

14.0%

Net assets to total assets0%0%2007 Apr. - Jun.
2008 Apr. - Jun.
2009 Apr. - Jun.
2010 Apr. - Jun.
2011 Apr. - Jun.
2012 Apr. - Jun.
2013 Apr. - Jun.
2014 Apr. - Jun.
2015 Apr. - Jun.
2016 Apr. - Jun.
2017 Apr. - Jun.
2018 Apr. - Jun.
2019 Apr. - Jun.
2020 Apr. - Jun.
2021 Apr. - Jun.
2022 Apr. - Jun.
2023 Apr. - Jun.
2023 Oct. - Dec.

100%

2007 Apr. - Jun.
2008 Apr. - Jun.
2009 Apr. - Jun.
2010 Apr. - Jun.
2011 Apr. - Jun.
2012 Apr. - Jun.
2013 Apr. - Jun.
2014 Apr. - Jun.
2015 Apr. - Jun.
2016 Apr. - Jun.
2017 Apr. - Jun.
2018 Apr. - Jun.
2019 Apr. - Jun.
2020 Apr. - Jun.
2021 Apr. - Jun.
2022 Apr. - Jun.
2023 Apr. - Jun.
2023 Oct. - Dec.

60%

2007 Apr. - Jun.
2008 Apr. - Jun.
2009 Apr. - Jun.
2010 Apr. - Jun.
2011 Apr. - Jun.
2012 Apr. - Jun.
2013 Apr. - Jun.
2014 Apr. - Jun.
2015 Apr. - Jun.
2016 Apr. - Jun.
2017 Apr. - Jun.
2018 Apr. - Jun.
2019 Apr. - Jun.
2020 Apr. - Jun.
2021 Apr. - Jun.
2022 Apr. - Jun.
2023 Apr. - Jun.
2023 Oct. - Dec.

Stability Ratios of Japanese Companies
Trends in stability ratios of Japanese companies*1《Companies capitalized
at 100M-1,000M(JPY)》《Companies capitalized
over 1,000M(JPY)》

100%
200%

185.3%

200%

41.3%
50%
100%

114.7%
43.3% 100%

80%
40%

39.2%

80%

60%
30%

26.3% 60%

40%
23.9%
20%

40%

20%
10%

20%

Current ratio (right scale)0%91Proportion of Financial Assets
Financial assets held by households*1

1%

54%

Japan

35%

Euro area

USA

12%

Currency and deposits
Bonds

11%

4%

10%

28%

29%

4%

Investment Trusts
Shares and equities*1. Prepared based on “Flow of Funds: Overview of Japan, the United States, and the Euro area” in Aug. 2023,
Bank of Japan Research and Statistics Dept

26%

11%

2%

21%

39%

Insurance and pension reserves
Others92

Long Term Business Results
3 banks (RB,SR,KO)

Consolidated
Total of group banks
Total of group banks

Business

BS

PL(JPY bn)

FY2014FY2015FY2016After KMFG integration
FY2017FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023Gross operating profit

632.4

619.5

563.1

552.5

661.3

644.1

658.6

639.1

601.9

600.0

627.4

Net interest income

425.9

401.3

377.9

368.3

454.2

435.9

431.1

417.4

429.1

419.3

421.6

Fee incomes *1

169.2

168.7

160.6

168.0

187.7

193.8

190.2

191.4

208.3

208.6

213.5

(357.7)(347.5)(362.4)(360.6)(442.6)(439.4)(426.5)(425.8)(427.2)(413.0)(423.1)

Net gains/(losses) on stocks

44.5

(6.5)

25.1

16.7

21.4

10.1

0.5

46.9

45.5

54.1

65.6

Credit related expenses

22.3(25.8)

17.4

14.7

10.1

(1.3)

(22.9)(57.4)(58.7)(15.9)(35.6)Net income attributable to ownersof parent

211.4

183.8

161.4

236.2

244.2

175.1

152.4

124.4

109.9

160.4

158.9

Term end loan balance

27,755.5

27,932.1

28,412.0

28,992.1

35,478.5

36,282.9

36,738.2

38,942.3

39,617.0

41,436.9

43,011.4

Loans to SMEs andindividuals

23,454.9

23,645.8

24,163.8

24,728.4

30,473.3

31,161.3

31,318.9

32,407.7

32,730.0

33,052.5

33,803.4

Housing loans*2

13,125.0

13,188.0

13,356.3

13,331.6

15,968.5

16,223.1

16,342.6

16,610.7

16,735.4

16,790.8

16,889.0

9,905.1

10,015.1

10,218.6

10,267.5

12,374.7

12,683.6

12,912.2

13,321.5

13,562.2

13,723.1

13,897.9

NPL ratio

1.51%

1.51%

1.35%

1.18%

1.26%

1.18%

1.14%

1.12%

1.32%

1.29%

1.34%

Stocks(Acquisition amount basis)

330.6

351.5

348.3

343.8

365.4

353.8

336.9

325.2

305.9

283.8

261.6

Unrealized gains/(losses)
on available-for-sale securities

573.1

460.1

555.4

649.4

672.8

598.3

420.7

615.3

521.2

472.9

663.3

Balance of Investment products
sold to individuals

3,791.5

3,751.7

3,645.7

3,618.6

4,569.7

4,762.3

4,585.8

5,128.7

5,564.5

5,533.2

6,193.0

Investment trust/ Fund wrap

2,070.9

1,871.1

1,759.3

1,733.7

2,178.4

2,222.4

2,017.0

2,533.1

2,845.7

2,666.9

3,111.4

Insurance

1,720.6

1,880.6

1,886.3

1,884.9

2,391.2

2,539.8

2,568.7

2,595.6

2,718.7

2,866.3

3,081.5

Housing loan*2

1,352.9

1,292.7

1,481.4

1,174.9

1,418.4

1,577.7

1,506.3

1,506.0

1,421.2

1,361.8

1,331.0

1,042.2

1,011.7

1,198.7

939.0

986.6

1,225.5

1,232.7

1,314.1

1,225.3

1,168.3

1,128.8

11.2

13.5

13.7

13.1

13.1

13.3

12.5

10.6

13.5

15.4

15.0

Operating expenses

Residential housing loans

Residential housing loans
Real estate business(Excluding equity)

Remaining public fund balance

128.0*1. Fees and commissions income plus trust fees

Fully repaid in June 2015

*2. Includes apartment loans (Origination includes Flat35)

93

Credit Rating Information (Long Term)

Moody’s

S&P

R&I

JCR

Resona Holdings

-

-

AA-

AA

Resona Bank

A2

A

AA-

AA

Saitama Resona Bank

A2

-

AA-

AA

Kansai Mirai Bank

-

-

-

AA

Minato Bank

-

-

-

AA

94

Composition of Resona HD’s Common Shareholders
2.26%
8.96%
20.01%

5.03%

3.96%

3.93%

4.89%

6.08%

6.09%

5.80%

5.88%

6.86%

6.65%

7.03%

6.59%

6.08%

5.40% Other

5.89%

5.69%

5.98%

6.86%

6.31%

6.12% Corporations

13.47%

14.19%

6.35%

41.95%

DIC
50.11%

15.68%

4.58%

15.48%

13.51%

13.44%

15.39%

14.60%

13.00%

12.14% Individuals,

etc.

16.51%

6.50%

19.72%

21.56%

27.92%

31.29%

34.17%

31.56%

34.00%

34.52%

36.27%

36.07%

34.46%

34.47%

37.49%

37.39%

37.12%

37.45%

Financial
institutions

2.18%
23.31%
13.77%
21.56%

16.13%
46.60%

45.27%

43.17%

42.55%

44.77% Foreigners

41.77%

28.67%

40.07%

27.61%

12.38%

Number ofshareholders(Million)

3.78%

5.39%

03/3

04/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

0.21

0.27

0.32

0.28

0.27

0.27

0.25

0.24

0.24

0.24

0.27

0.29

0.28

0.27
95

Proactively Communicating with Our Shareholders and Investors (1)Resona Group Website[Investor Relations]View IR presentation materials from here

Usability and sufficiency
of information of IR site
are highly evaluated96Proactively Communicating with Our Shareholders and Investors (2)Resona Group Integrated Report (issued annually in July)
This publication provides an easy-to-understand overview of the Resona Group’s features and initiatives aimed atachieving sustainable value creation.

97