Message from the Management
The COVID-19 pandemic has changed our very way of life, including conventional wisdom and what we value. With major changes also taking place in the banking needs of customers due to the fast-paced evolution of technology and changing social and industrial structures, financial institutions must evolve while harnessing the strengths of their existing business model at the same time.
During the COVID-19 pandemic, the Resona Group has worked to provide smooth financial services in the midst of the downturn in economic activities as a financial institution that forms an important part of social infrastructure in local communities. At our branches, we have taken thorough steps to prevent infections and have continued to operate with the safety of customers our top priority. In addition, to respond promptly and flexibly to the banking needs of customers, we have set up a consultation structure at each of our Group companies, and through the Resona Group App, we are responding to customer needs for contactless and non-face-to-face services.
Under such circumstances, net income attributable to owners of the parent for fiscal year 2021 totaled 124.4 billion yen, which is 3.7% over our initial full-year target of 120 billion yen. In the first quarter, earnings got off to a slow start from restrictions in place due to the spread of COVID-19, but later our loan balance increased at a strong pace buoyed by our funding support provided to customers, and we were able to get back on track to growth thanks to our appropriate provision of solutions to changing customer needs during the COVID-19 pandemic. On the cost side, we saw improvements in personnel and non-personnel expenses from our ongoing commitment toward low-cost operations. Furthermore, the non-performing loan ratio stood at 1.12% and the capital adequacy ratio was 11.54%, both as of March 31, 2021, indicating our financial soundness remains robust. In fiscal year 2022, we plan to continue paying a stable dividend of 21 yen per share of common stock. We will continue to ensure a stable dividend going forward and strive to enhance shareholder returns while considering a balance between financial soundness and profitability as well as opportunities for growth investments.
In April 2021, Kansai Mirai Financial Group became a wholly-owned subsidiary of Resona Holdings. We will now dedicate our fullest efforts to developing our customers and local economies by further strengthening management capabilities, including integration of the Resona Group’s solution functions and restructuring our entire operating base. Furthermore, on May 11, 2021, we announced the acquisition of up to 88 million treasury shares to neutralize dilution of earnings per share (EPS) which occurred due to the execution of a series of transactions associated with this acquisition.
In the second year of our Medium-term Management Plan, we continued working toward our goals, which include establishing the “Resonance Model” as our basic policy. This means starting from the issues confronting customers and society, we will provide new value to customers through diverse forms of resonance fostered by broad connections and novel concepts without being tied to conventional banking practices and frameworks.
We will continue to focus the collective efforts of the Group on becoming the "Retail No. 1" while remaining true to our basic stance that "Customers' happiness is our pleasure," as we work to maximize corporate value.
President and Representative Executive Officer