Iyogin Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥29.95B
• EPS: ¥147.27

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Iyo Bank Holdings (Iyogin HD) delivered solid profitability in FY2026 Q2 (cumulative), highlighted by net income of ¥43.243bn, up 44.4% YoY, despite numerous undisclosed line items typical for financial institutions’ XBRL tagging. Ordinary income was ¥55.243bn, broadly aligning with pre-tax profit when considering income tax expense of ¥12.767bn. Using period-end equity of ¥850.062bn, the half-year ROE proxy is about 5.1%, which indicates roughly 10% on a simple annualized basis, subject to mid-year equity and earnings seasonality caveats. Balance sheet scale remains large at ¥9.354tn in total assets, with financial leverage (assets/equity) of roughly 11x, typical for a regional banking group. The implied equity ratio (equity/assets) is about 9.1%, even though the reported equity ratio field shows 0.0% (undisclosed). Operating cash flow was negative at ¥-184.8bn, which for a bank reflects movements in loans, deposits, and securities rather than operating weakness; cash flow metrics must be interpreted cautiously for financial institutions. EBITDA-based and margin metrics are not decision-useful for banks, and many standard industrial KPIs are undisclosed or not applicable here. The effective tax rate appears to be roughly 23% based on pre-tax profit approximations. Liquidity metrics like current and quick ratios are not meaningful for banks due to the nature of their funding model; solvency should be viewed via capital and asset quality, which are not provided. The debt-to-equity ratio of 9.88x is aligned with the sector, reflecting deposit-funded liabilities rather than corporate debt leverage. EPS was ¥147.27 for the cumulative period, implying roughly 294 million shares outstanding if one infers share count, though shares were not disclosed. The ordinary income level suggests stable core profitability; the large YoY rise in net income likely reflects improved credit costs and/or securities-related gains amid a changing rate environment, though drivers are not disclosed. Dividend data are undisclosed; however, current earnings imply capacity to fund ordinary dividends if the group maintains a stable payout policy. Key uncertainties include the mix between net interest income, fees, trading/securities, and credit costs—none of which were itemized. Overall, the results point to improving profitability and adequate capital, with the main analytical limitations stemming from undisclosed revenue, liquidity, and capital adequacy detail.

Profitability Analysis

ROE decomposition is constrained by missing revenue and average balance data; however, we can outline: (1) Net profit margin: not meaningful due to undisclosed revenue; for banks, use net income/ordinary income as a rough proxy—¥43.243bn/¥55.243bn ≈ 78% after tax, driven by limited below-line items and a ~23% tax rate. (2) Asset turnover: traditional turnover is not applicable to banks; instead, earnings-to-assets proxy: net income/total assets ≈ 0.46% for the half-year (≈0.9% annualized), indicating decent returns on a large balance sheet. (3) Financial leverage: assets/equity ≈ 11.0x, consistent with regional-bank norms and supportive of double-digit annualized ROE when combined with modest earnings-to-assets. Margin quality: Ordinary income to net income conversion is clean (tax-only bridge), implying limited extraordinary items this period. Operating leverage: Without disclosed topline/expense breakdown, precise operating leverage is unavailable; that said, the outsized YoY gain in net income relative to flat reported operating income indicates either (a) non-linear items (credit costs, security valuation gains) or (b) disclosure constraints; sustainability should be assessed with caution until core income components are confirmed.

Growth Assessment

Revenue is undisclosed; the headline +0.0% YoY is not decision-useful. Net income growth of +44.4% YoY is strong and likely reflects a favorable mix of credit cost normalization and interest-related income tailwinds or securities gains, though the precise drivers are not provided. Ordinary income at ¥55.243bn provides a stable proxy for pre-tax performance and suggests improved core earnings. Profit quality appears reasonable given taxes account for the bulk of the gap from ordinary income to net income, implying limited one-offs this period. Structural sustainability depends on (i) net interest margin trajectory amid domestic rate normalization, (ii) fee income momentum (wealth, settlement, corporate solutions), and (iii) stability of securities-related P&L; none are disclosed here. Outlook: If the current earnings run-rate persists, annualized net income could approximate ¥86–90bn, supporting a roughly 10% ROE on period-end equity; however, this assumes stable credit costs and market conditions. Sensitivity remains high to AFS securities valuation, duration positioning, and deposit beta behavior, which are undisclosed.

Financial Health

Liquidity: Current and quick ratios are not applicable for banks; funding stability should be assessed via deposit mix and liquidity coverage, which are not disclosed. Solvency: Equity of ¥850.062bn against assets of ¥9.354tn implies an equity ratio of ~9.1%; risk-based capital ratios (CET1, total capital) are not provided, limiting precision. Leverage: Liabilities/equity at 9.88x and assets/equity at ~11x are within sector norms for a regional bank. Interest expense is undisclosed (0 reported), preventing net interest margin inference. No details on non-performing loans, credit costs, or allowances were provided, which are essential to gauge solvency resilience. Overall capital structure appears conservative by book measures, but the absence of regulatory capital disclosures constrains assessment.

Cash Flow Quality

Earnings quality: Net income of ¥43.243bn reconciles primarily through taxes, suggesting limited extraordinary impacts; however, without segment detail we cannot separate core net interest income from market-driven gains. Operating cash flow of ¥-184.765bn is typical volatility for a bank and likely reflects loan growth, securities purchases/sales settlement timing, and deposit flows; it should not be read as weak cash generation as in non-financials. Free cash flow is not meaningful for banks; reported FCF of 0 reflects undisclosed capex/investing CF. Working capital metrics are not relevant to banks in the conventional sense; the negative OCF/NI ratio (-4.27x) is not a reliable quality-of-earnings indicator in this sector. D&A of ¥3.318bn is small relative to earnings, implying limited distortion from non-cash charges.

Dividend Sustainability

Dividend per share, payout ratio, and FCF coverage are undisclosed (reported as zero). Based on earnings capacity (¥43.243bn for the half-year), there appears to be ample room to fund ordinary cash dividends, assuming a typical regional bank payout policy; however, without share count, historical policy, or board guidance, we cannot quantify coverage. In the absence of investing cash flow detail, FCF-based coverage is not applicable for banks. Key determinants of dividend sustainability will be net income stability, credit cost trends, and regulatory capital buffers; none are disclosed here.

Risk Assessment

Business Risks:

• Net interest margin compression if deposit betas rise faster than asset yields
• Market valuation risk on AFS/HTM securities amid rate volatility
• Credit cycle deterioration in SME and retail books increasing credit costs
• Fee income softness due to macro slowdown or competitive pressure
• Regional concentration risk in core operating area

Financial Risks:

• Duration and basis risk in the securities portfolio not disclosed
• Capital adequacy (CET1/total capital) not disclosed; buffer unknown
• Liquidity risk metrics (LCR/NSFR) not disclosed
• Negative operating cash flow volatility from balance sheet expansion/flows
• Potential earnings volatility from securities and derivatives gains/losses

Key Concerns:

• Significant undisclosed items (revenue, capital ratios, asset quality) limit analytical precision
• Reliance on annualizing half-year profits to infer full-year ROE
• Sensitivity of earnings to market movements not quantified

Investment Implications

Key Takeaways:

• Strong net income growth (+44.4% YoY) with clean tax bridge points to improved profitability
• Leverage (~11x assets/equity) and book equity ratio (~9.1%) align with sector norms
• Annualized ROE around ~10% is plausible if current run-rate holds
• Cash flow metrics are not decision-useful for banks; focus on earnings mix and capital
• Analytical visibility is limited by undisclosed capital, asset quality, and income breakdown

Metrics to Watch:

• Net interest margin and deposit beta progression
• Credit costs, NPL ratio, coverage ratio
• AFS/HTM securities duration and unrealized gains/losses
• Fee and commission income trajectory
• Regulatory capital ratios (CET1, total capital), leverage ratio
• Ordinary income breakdown (core vs. market-related)
• Shareholder return policy (dividend and buyback guidance)

Relative Positioning: Based on available figures, Iyogin HD exhibits profitability and leverage in line with Japanese regional bank peers, with the potential for around 10% annualized ROE if current conditions persist; however, limited disclosure on capital, asset quality, and income mix constrains a definitive relative assessment.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis