Resona (8308) Q1 2027 earnings summary

Executive summary

• Achieved record-high 1Q profit with net income attributable to owners of parent at JPY80.53 bn, up 14.2% year-over-year, and core net operating profit at JPY107.4 bn, up 35.4% year-over-year.

• Ordinary income rose 20.0% year-over-year to JPY359.98 bn, with comprehensive income up 43.4% to JPY159.04 bn.

• Both net interest income and fee income remained steady, supported by higher loan balances and rates.

• Upward revision to full-year earnings target by JPY20.0 bn to JPY330.0 bn, a 27.6% increase year-over-year.

Financial highlights

• Gross operating profit rose to JPY217.84 bn, up 12.1% year-over-year.

• Net interest income from domestic loans and deposits increased by JPY20.9 bn year-over-year to JPY114.3 bn.

• Net income per share increased to JPY35.79, up 16.3% year-over-year.

• Total assets grew to JPY77.01 tn as of June 30, 2026, up from JPY76.30 tn at March 31, 2026.

• ROE (stockholders' equity) improved to 12.92% from 11.96% year-over-year.

Outlook and guidance

• Full-year net income target revised upward to JPY330.0 bn, with net income per share targeted at JPY146.97.

• Dividend forecast for FY2026 is JPY37.00 per share, up from JPY29.00 in FY2025.

• ROE target revised to 10.7% for FY2026.

• Shareholder return ratio forecast at 50.9%, with new share buyback program of JPY50.0 bn.

• Management notes ongoing uncertainties in the economic environment and provides earnings targets rather than forecasts.