Transferring Coverage of Four Japan Banks; Policy Rate Benefits Largely Priced In
We are transferring coverage of Mitsubishi UFJ Financial Group, or MUFG, Sumitomo Mitsui Financial Group, or SMFG, Mizuho Financial Group, and Resona Group.
Resona Holdings Inc 8308
Bulls Say, Bears Say
Bulls
If yen interest rates rise, Resona has the highest operational gearing among major Japanese banks to increases in net interest income, given its domestic focus and high revenue contribution of NII.
Bears
Investor expectations for Resona to benefit more from rising yen interest rates than other major Japanese banks may be disappointed.
Trading Information
- Previous Close Price
- ¥2,211.50
- Day Range
- ¥2,209.00–2,253.00
- 52-Week Range
- ¥1,433.50–2,618.50
- Bid/Ask
- ¥2,230.00 / ¥2,238.00
- Shares Outstanding
- 2.23B
- Market Cap
- ¥4.97T
- Volume/Avg
- 8M / 10M
Key Statistics
- Price/Earnings (Normalized)
- 18.13
- Price/Sales
- 4.94
- Dividend Yield (Trailing)
- 1.48%
- Dividend Yield (Forward)
- 1.66%
- Dividend Payment Schedule
- Jun, Dec
- Total Yield
- 2.76%
Company Profile
Resona Holdings is the fourth-largest Japanese banking group by assets after the three megabanks. It is significantly smaller than the megabanks, which have nationwide operations. Resona’s operations are mainly in the Kansai region (54% of its branches) and the Tokyo metropolitan area (43% of branches), with a strong focus on retail and small and medium-size enterprises, rather than lending to large corporates. Unlike the three megabanks, Resona Holdings is predominantly a domestic bank, with limited overseas exposure.
- Sector
- Financial Services
- Industry
- Banks - Regional
- Stock Style Box
- Large Growth
- Total Number of Employees
- 28,954
- Website
- https://www.resona-gr.co.jp
Competitors
Valuation
|
Metric
|
8308
|
MFG
|
8316
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.13 | 12.77 | 7.65 |
Price/Book Value | 1.73 | 1.66 | 1.49 |
Price/Sales | 4.94 | 4.06 | 3.94 |
Price/Cash Flow | 20.39 | — | 26.42 |
Price/Earnings
8308
MFG
8316
Financial Strength
|
Metric
|
8308
|
MFG
|
8316
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
Quick Ratio
No chart available
Profitability
|
Metric
|
8308
|
MFG
|
8316
|
|---|---|---|---|
Return on Assets (Normalized) | 0.51% | 0.61% | 0.80% |
Return on Equity (Normalized) | 13.74% | 16.24% | 16.28% |
Return on Invested Capital (Normalized) | — | — | — |
Return on Assets
8308
MFG
8316
Banks - Regional Industry Comparables
|
1-Day Chart
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United States