Curious about Resona Holdings net worth and its financial performance in 2024? In this article, Ando Money breaks down the latest updates on Resona’s market cap, revenue drivers, and key financial highlights.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Resona Holdings, Inc. |
| Full Name | Resona Holdings, Inc. |
| Traded as | Tokyo Stock Exchange (TSE: 8308) |
| ISIN | JP3500610005 |
| Founded | 2002 |
| Founders | N/A |
| Country/Territory | Japan |
| Headquarters | Koto, Tokyo, Japan |
| Chief Executive Officer | Masahiro Minami |
| Number of Employees | 13,874 (as of 2024) |
| Market Cap | $17.03 Billion |
| Total Assets | ¥76.61 trillion ($523.58 billion) |
| Total Equity | ¥2.74 trillion ($18.73 billion) |
| Revenue | ¥250.91 billion ($1.71 billion) (Q1 FY24) |
| Net Income | ¥55.38 billion ($377.57 million) (Q1 FY24) |
What is the Net Worth/ Market Cap Of Resona Holdings in 2024?
As of September 2024, Resona Holdings has a market capitalization of $17.03 billion.
This positions Resona as a significant player in Japan’s financial industry, though it lags behind some of the larger banks both domestically and internationally.
Despite this, Resona continues to show resilience and growth potential.
When compared to other global banking institutions, its market cap is relatively modest, but its performance and market presence in Japan are noteworthy.
Some comparable banks in the industry include:
- Mizuho Financial Group
- Sumitomo Mitsui Financial Group
- MUFG (Mitsubishi UFJ Financial Group)
- Nomura Holdings
- Deutsche Bank
- HSBC
- Wells Fargo
- BNP Paribas
- Bank of America
- Barclays
For readers interested in exploring more about the largest and most valuable banks, you can check our detailed analysis of the world’s top banks.
Resona Holdings Financial Performance Overview
Key Drivers of Revenue Growth
Resona Holdings has demonstrated notable growth in the first quarter of FY2024. A significant driver of this growth has been Resona Bank, one of the largest contributors to the group’s financial performance.
The bank’s ability to capture increasing revenue from domestic loans and deposits has boosted its standing. Specifically, loan growth saw an increase of ¥503.3 billion ($3.44 billion), reflecting Resona’s strong lending activities.
In addition to loans, fee income from trust asset management, real estate, and corporate solutions played a pivotal role.
These services, tied to asset succession and M&A, provided substantial revenue streams that helped improve the bank’s overall financial results.
Another contributing factor has been the group’s strategic focus on domestic deposits. An increase in the average loan balance and interest rates in Japan has led to a surge in interest income, further enhancing their profitability.
The Role of Government Involvement
A key event in Resona Holdings’ financial history was the Japanese government’s intervention.
In 2003, the government injected ¥1.96 trillion ($13.39 billion) into Resona to stabilize the company and prevent financial collapse.
This public funds injection effectively made the government a majority shareholder, holding 68.25% of Resona Holdings.
This move was crucial in ensuring the group’s survival and eventual recovery. Since then, Resona has worked hard to improve its non-performing loans and strengthen its financial health, positioning itself for long-term stability.
This government stake continues to have a significant impact on Resona’s financial direction.
Mergers and Acquisitions
The financial structure of Resona Holdings has been shaped by several major mergers.
The most notable was the merger between Daiwa Bank and Asahi Bank in 2003, which led to the formation of Resona Bank. This merger allowed the group to consolidate operations and build a stronger financial entity.
Additionally, the acquisition of Kansai Mirai Financial Group further expanded Resona’s regional banking capabilities, particularly in the Kansai region.
This acquisition also strengthened its ability to cater to local SMEs, which contributed positively to its financial results.
Breakdown of Assets and Liabilities
As of June 2024, Resona Holdings’ total assets amount to ¥76.61 trillion ($523.58 billion). These assets include substantial loans and bills discounted, which reached ¥43.25 trillion ($295.60 billion), marking a significant portion of Resona’s assets.
The group’s securities holdings also contribute heavily to the asset side of the balance sheet, with ¥9.38 trillion ($64.10 billion) in securities as of the end of Q1 FY2024.
On the liabilities side, the group faces a notable decline in deposits, which fell by ¥990.1 billion ($6.77 billion) from the previous fiscal year. However, their strategic focus on high-value deposits and fee-generating products mitigates this decline.
Additionally, the group’s deferred tax assets have seen adjustments, reflecting its efforts to improve future profitability.
Financial Impact of Core Banking Operations
The Resona Bank is the flagship entity of Resona Holdings and serves as the largest contributor to the group’s overall financial performance.
The bank’s core operations, which focus on domestic retail and corporate banking, generated ¥174.95 billion ($1.19 billion) in gross operating profit for the first quarter of FY2024, up by ¥20.1 billion ($137.44 million) from the same period last year.
This growth reflects the bank’s success in driving interest income through loan activities and customer deposits.
Meanwhile, the group’s regional arm, Saitama Resona Bank, contributed to the overall profitability of the group.
It primarily serves the Saitama Prefecture and focuses on the banking needs of SMEs and retail customers in the region. Its performance complements Resona Bank’s nationwide presence.
Dividend Policy and Shareholder Value
Resona Holdings has maintained a consistent dividend policy, ensuring that shareholder equity remains attractive.
For FY2024, the group has forecasted a dividend of ¥23 per share, an increase from ¥22 in FY2023.
This increase signals the group’s commitment to returning value to its shareholders while maintaining a focus on long-term growth.
FAQs about Resona Holdings
What are the key drivers of its revenue growth?
Key drivers include domestic loans, rising interest income, and fee income from trust, asset management, and real estate.
What role does the Japanese government play in the bank?
The Japanese government holds a 68.25% stake after injecting ¥1.96 trillion ($13.39 billion) in 2003.
What major mergers have impacted it?
The 2003 merger of Daiwa Bank and Asahi Bank formed Resona Bank. It also acquired Kansai Mirai Financial Group.
What are its total assets as of June 2024?
It holds total assets of ¥76.61 trillion ($523.58 billion), with loans and bills discounted totaling ¥43.25 trillion ($295.60 billion).
What is its dividend policy?
For FY2024, it plans a dividend of ¥23 per share, up from ¥22 in FY2023.
How does it manage its liabilities?
It improves deferred tax assets and reduces non-performing loans, despite a slight decline in deposits by ¥990.1 billion ($6.77 billion).
What is Resona Bank’s contribution?
Resona Bank generated ¥174.95 billion ($1.19 billion) in gross operating profit in Q1 FY2024, driven by domestic loans and deposits.
What is Saitama Resona Bank’s strategic focus?
Saitama Resona Bank serves SMEs and retail customers in Saitama Prefecture, contributing to the group’s profitability.
Conclusion
Resona Holdings’ financial growth continues to shape its future in the banking industry. Want more insights? Share your thoughts below, or explore more content on andomoney.com to stay updated!
