Jimoto Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥118M
• Net Income: ¥118M
• EPS: ¥55.42

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend 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

Jimoto Holdings (7161) reported FY2026 Q2 consolidated results under JGAAP with net income of ¥1,482 million (+4.8% YoY) and ordinary income of ¥1,464 million, against operating income of only ¥118 million. The large gap between operating and ordinary income is consistent with bank-type accounting, where net interest income, fees, and securities-related gains are largely captured below operating income as non-operating items. Based on net income of ¥1.48 billion and period-end equity of ¥85.65 billion, simple half-year ROE is approximately 1.7% (annualized roughly 3.5%), which remains modest relative to typical cost of equity for regional banks. Ordinary income relative to total assets of ¥2.576 trillion implies a half-year ROA of roughly 0.057% (annualized ~0.11%), also modest but within the range observed among regional peers. Tax expense of ¥777 million versus net income indicates an implied pre-tax profit of ~¥2.26 billion and an effective tax rate near 34–35%, which looks normal. The implied presence of roughly ¥0.8 billion in extraordinary gains (pre-tax minus ordinary income) suggests one-off contributions partly underpinning bottom-line strength this quarter. The balance sheet shows very high financial leverage (liabilities/equity ~28x; assets/equity ~30x) and an equity ratio of about 3.3%, typical for financial institutions but leaving limited loss-absorption capacity relative to non-financials. Liquidity metrics derived from “current” classifications are not meaningful for banks and are likely distorted by reporting taxonomy. Cash flow statements are unreported in the extract (zeros), so operating and free cash flow quality cannot be directly assessed. Dividend data are also unreported here (DPS and payout ratio show zero), limiting visibility on distribution policy and coverage. Overall profitability improved YoY at the net income level, but the quality mix favors non-operating/extraordinary items rather than core operating trends. Sustainability will depend on core earnings drivers such as loan-deposit margin, fee income stability, expense control, and credit costs normalization. Interest rate environment and securities portfolio valuation remain key external variables for earnings trajectory. Given the limited disclosed line items, conclusions rely on inferred banking dynamics and the few non-zero figures provided. The outlook hinges on whether ordinary income can be maintained without extraordinary gains and whether credit costs remain benign as monetary policy normalizes.

Profitability Analysis

ROE_decomposition: Using DuPont framing with available data: Net income ~¥1,482m; period-end equity ¥85,646m; assets ¥2,576,055m. Half-year net margin and asset turnover are not computable due to unreported revenue, but bank-style ROA proxy uses net income/assets ≈ 0.0575% for the half year (annualized ~0.115%). Financial leverage (assets/equity) ≈ 30.1x aligns with the reported leverage figure. This yields an annualized ROE on the order of low single digits (~3.5%), indicating modest profitability. margin_quality: Net income exceeded ordinary income after accounting for an implied ~¥795m in extraordinary gains (pre-tax ≈ ¥2,259m minus ordinary ¥1,464m). This mix suggests non-recurring items contributed meaningfully to the quarter’s bottom line. Effective tax rate implied at ~34–35% appears normal. Core profitability should be judged on ordinary income trends rather than operating income (¥118m), given bank accounting classifications. operating_leverage: Without revenue and cost breakdown, operating leverage cannot be quantified. However, the small operating income relative to ordinary income implies that fee/interest and securities-related components drive earnings; cost discipline (personnel and G&A) relative to core gross operating profit will be crucial to improve efficiency (OHR), but OHR is not disclosed here.

Growth Assessment

revenue_sustainability: Revenue is unreported. Ordinary income of ¥1,464m indicates underlying earnings capacity, but the period also benefited from extraordinary gains (~¥795m pre-tax), raising questions about repeatability. profit_quality: Net income growth (+4.8% YoY) appears supported by one-off items. Ordinary income better reflects recurring trends; sustainability depends on net interest margin resilience, fee income stability, and securities gains not reversing. outlook: Assuming stable credit costs and gradual tailwinds from rate normalization, core income could improve, but higher yields also elevate securities valuation risk. Population decline in the home region and competition may pressure loan growth and fees. Monitoring ordinary income ex-one-offs and credit cost trends will be essential.

Financial Health

liquidity: Current ratio and quick ratio are not meaningful for banks and are distorted by classification; reported current assets/liabilities are small relative to the balance sheet. Funding stability should be assessed via deposit base, market funding reliance, and liquidity coverage, which are not disclosed here. solvency: Total assets ¥2,576,055m; total liabilities ¥2,393,977m; equity ¥85,646m implies an equity ratio of ~3.3% and leverage (liabilities/equity) of ~28x, typical for regional banks. Capital adequacy (CET1, total capital ratio) is not disclosed; equity/assets suggests limited buffer typical of the sector, making earnings and valuation sensitive to credit and securities marks. capital_structure: Balance sheet is deposit- and liability-funded as expected for a bank. Debt-to-equity of ~27.95x matches sector norms; no separate interest expense disclosed in the extract.

Cash Flow Quality

earnings_quality: Cash flow data are unreported here. The presence of material extraordinary gains (~¥795m pre-tax) indicates that reported net income includes non-recurring elements, lowering quality relative to purely core earnings. FCF_analysis: Operating CF and investing CF are not disclosed; free cash flow cannot be assessed. For banks, regulatory capital generation and retained earnings are more relevant than FCF. working_capital: Working capital metrics are not applicable for banks; changes in loans, deposits, and securities portfolios would be the relevant drivers but are not provided.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are unreported in the extract (shown as zero placeholders). With EPS of ¥55.42 for the period, payout sustainability cannot be calculated. FCF_coverage: Not assessable; operating and free cash flows are not disclosed here. policy_outlook: Regional banks typically target stable, gradually increasing dividends subject to earnings durability and capital requirements. Given the contribution of extraordinary gains this period and modest underlying ROE, dividend headroom should be evaluated against core (ordinary) earnings and regulatory capital, which are not available here.

Risk Assessment

Business Risks:

• Regional demographic headwinds and sluggish loan demand in the home market
• Compression or volatility in net interest margin amid BOJ policy normalization
• Fee income pressure from competition and slow uptake of non-lending services
• Operational risks including system upgrades and compliance costs

Financial Risks:

• Securities portfolio valuation losses as interest rates rise
• Credit cost normalization from historically low levels
• High leverage inherent to banking with limited equity buffer (~3.3% equity ratio)
• Concentration risks in specific industries or geographies (details not disclosed)
• Sensitivity of capital to unrealized losses under available-for-sale accounting

Key Concerns:

• Dependence on non-operating and extraordinary gains to support net income in the period
• Limited visibility due to unreported revenue and cash flow statements
• Modest underlying ROE (~3.5% annualized) versus typical cost of equity

Investment Implications

Key Takeaways:

• Net income ¥1.48bn up 4.8% YoY, aided by implied extraordinary gains (~¥0.8bn pre-tax)
• Ordinary income ¥1.46bn is the better proxy for core earnings; sustainability is key
• Half-year ROE ~1.7% (annualized ~3.5%) and ROA ~0.057% indicate modest profitability
• Leverage ~30x and equity ratio ~3.3% are typical for regional banks but limit buffers
• Cash flow and dividend details are not disclosed in this extract, reducing visibility

Metrics to Watch:

• Ordinary income excluding extraordinary items
• Net interest margin and loan-deposit spread
• Credit costs (provisions) and NPL ratio
• Securities gains/losses and OCI movements
• Expense efficiency (OHR) and fee income mix
• Capital adequacy (CET1 ratio) and retained earnings growth

Relative Positioning: Based on the limited data, profitability metrics are on the low side of regional bank peers (annualized ROE ~3.5%), with leverage and equity ratio broadly in line with the cohort; earnings quality this quarter appears less robust due to one-off gains.

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