Recognition of an impairment loss on shares of an affiliated company in the standalone financial statements and an equity-method investment loss in the consolidated financial statements resulting from the one-time write-off of the equivalent amount of goodwill
Resona Holdings, Inc. (standalone and consolidated financial statements); equity-method affiliate: Digital Garage,Inc.
The market price of Digital Garage,Inc.'s shares at the end of the fiscal year declined by 50% or more compared with the Company's acquisition cost. In the consolidated financial statements, the equivalent of ¥44.9 billion in goodwill will be written off in a single charge in accordance with the applicable rules.
¥44.9 billion (standalone: impairment loss on shares of an affiliated company, recorded as an extraordinary loss; consolidated: equity-method investment loss resulting from the one-time write-off of the equivalent amount of goodwill, recorded as other ordinary expenses)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
There will be no revision to the consolidated earnings target for the fiscal year ending March 2026, namely net income attributable to owners of the parent. The year-end dividend forecast will also remain unchanged.
The recognition of this loss will not change the strategic importance of Digital Garage,Inc. The Resona Group will combine its customer base and financial expertise with the Company's strengths to jointly develop and promote its platform business.
| Item | Details |
|---|---|
| Event name | Recognition of an impairment loss on shares of an affiliated company in the standalone financial statements and an equity-method investment loss in the consolidated financial statements resulting from the one-time write-off of the equivalent amount of goodwill |
| Date of occurrence | 31 March 2026 (as of the fiscal year-end) |
| Subject Entity | Resona Holdings, Inc. (standalone and consolidated financial statements); equity-method affiliate: Digital Garage,Inc. |
| Cause | The market price of Digital Garage,Inc.'s shares at the end of the fiscal year declined by 50% or more compared with the Company's acquisition cost. In the consolidated financial statements, the equivalent of ¥44.9 billion in goodwill will be written off in a single charge in accordance with the applicable rules. |
| Amount of Impact on Business Performance | ¥44.9 billion (standalone: impairment loss on shares of an affiliated company, recorded as an extraordinary loss; consolidated: equity-method investment loss resulting from the one-time write-off of the equivalent amount of goodwill, recorded as other ordinary expenses) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | There will be no revision to the consolidated earnings target for the fiscal year ending March 2026, namely net income attributable to owners of the parent. The year-end dividend forecast will also remain unchanged. |
| Outlook | The recognition of this loss will not change the strategic importance of Digital Garage,Inc. The Resona Group will combine its customer base and financial expertise with the Company's strengths to jointly develop and promote its platform business. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The market price of Digital Garage,Inc.'s shares at the end of the fiscal year declined by 50% or more compared with the Company's acquisition cost. In the consolidated financial statements, the equivalent of ¥44.9 billion in goodwill will be written off in a single charge in accordance with accounting practice guidelines.