[Company analysis] Resona Holdings, Inc. (りそなホールディングス)

「Resona Holdings, Inc. (りそなホールディングス)」is a financial holding company which owns「Resona Bank(りそな銀行)」,「Saitama Resona Bank(埼玉りそな銀行)」and「Kansai Mirai Financial Group(関西未来ファイナンシャルグループ)」.  But it is not included in three megabanks in Japan(「Mitsubishi UFJ Financial Group, Inc.(三菱UFJフィナンシャル・グループ)」,「Sumitomo Mitsui Financial Group, Inc.(三井住友フィナンシャルグループ)」and「Mizuho Financial Group, Inc.(みずほフィナンシャルグループ)」). As for the scale,「Resona Holdings」is the second largest mega banks in Japan. The number of consolidated employees is approximately 16,785.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Resona Holdings, Inc.
Company name (Japanese)	りそなホールディングス
Date of establishment	Wednesday, December 12, 2001
Headquarters location	〒541-0051 大阪府大阪市中央区備後町2丁目2番1号
Capital	50,472
Consolidated sales	860,706
Consolidated operating profit	203,018
Consolidated total assets	59,110,075
Consolidated capital	2,356,178
Capital adequacy ratio	4.0%
Consolidated number of employees	16,785

 

 

 

2. Summary and Features

 
As a joint financial holding company of「Daiwa Bank(大和銀行)」,「Kinki Osaka Bank(近畿大阪銀行)」and「Nara Bank(奈良銀行)」, in December 2001,「Daiwa Gin Holdings Co., Ltd.,(株式会社大和銀ホールディングス)」was established. This holdings company integrated「Asahi Bank(あさひ銀行)」as of March 2002, and changed the name into「Resona Holdings」from April of the same year. In the fiscal year ended March 31, 2003, internal conflicts occurred over the disposal of bad loans had continued since its predecessor period. And they fell into a state of undercapitalization with an equity ratio of less than 4%.

Therefore, they issued 1,960 billion yen of preferred stock and common stock for the「Deposit Insurance Corporation of Japan(預金保険機構)」, and eventually became nationalized. Since its nationalization, they worked hard on restructuring, such as reducing the salaries of all employees by 30% and curtailing hiring. In addition, as a result of concentrating management resources on transactions for individuals and small and medium-sized enterprises, a structure has been created that can secure profits to some extent. After that, as a result of accumulating internal reserves and aiming for early redemption of public funds in stages, the repayment was completed in June 2015.

Currently, among the Japanese domestic banks,「Resona Holdings」has top class scale that can be compared with  only other megabanks(「Mitsubishi UFJ Financial Group」,「Sumitomo Mitsui Financial Group」,「Mizuho Financial Group」). These megabanks have averagely around 730 branches. In case of top class regional banks, the number of their branches are about 260.

However,「Resona Holdings」has about 580 branches, which is comparable to megabanks. In particular, it is concentrated in the metropolitan area and the Kansai area where has progressive economic activity and covers more than 30% of the population and GDP in Japan. That is why sometimes,「Resona Holdings」was counted as  Japan's four megabanks. Owing to its intermediate scale, it can conducts community-based development. In addition, their operation efficiency is relatively high due to the business restructuring that they experienced and they achieved high profitability through retail sales.

 

 

 

3. Major Business

 

■ Bank business

 

 

 

4. Financial information

 

※Unit is JPY million

	2016	2017	2018
Consolidate revenue	757,955	742,827	860,706
Consolidate gross income	226,278	217,777	203,018
Consolidated total assets	48,456,133	50,243,789	59,110,075
Consolidated net assets	1,946,779	2,102,936	2,356,178