Mebuki Financial Group,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥34.63B
• Net Income: ¥34.46B
• EPS: ¥46.03

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

Mebuki Financial Group (7167) reported solid profitability for FY2026 Q2 on a consolidated JGAAP basis despite extensive disclosure gaps in revenue and cash flow line items typical for financial institutions’ XBRL tagging. Operating income reached ¥34.6bn, up 76.3% YoY, while ordinary income was ¥59.7bn, indicating sizable non-operating contributions. Net income was ¥43.8bn, up 36.7% YoY, with EPS of ¥46.03. Pre-tax profit implied by net income plus income tax is approximately ¥57.6bn, yielding an effective tax rate near 24.0%, consistent with historical norms for Japanese banks. Total assets stood at ¥20.98tn and total equity at ¥1.03tn, implying financial leverage of roughly 20.3x; this is in line with the sector’s balance-sheet-intensive model. Based on available figures, ROA is about 0.21% and an indicative period-end ROE is about 4.2% (net income of ¥43.8bn divided by period-end equity of ¥1.03tn), though true ROE should be based on average equity. The large gap between ordinary income (¥59.7bn) and operating income (¥34.6bn) suggests meaningful contributions from non-operating items such as securities-related gains, dividends, or other recurring financial operations. Liquidity metrics such as current and quick ratios are not meaningful for banks; solvency is better assessed via regulatory capital, which is not disclosed here. Cash flow data are unreported (zeros), limiting earnings quality and FCF assessment. Dividends and payout metrics are also unreported in this dataset; historically, regional banks target stable dividends, but we cannot infer policy changes from the provided figures. Balance sheet scale and leverage indicate the group remains one of the larger regional banking groups, and YoY profit growth suggests improved core profitability and/or lower credit costs and securities market tailwinds. However, sustainability depends on net interest margin (NIM) trajectory, credit cost normalization, and securities valuation amid rate volatility. Overall, profitability improved meaningfully, capital appears stable in nominal terms, and the outlook will hinge on interest-rate dynamics, fee income resilience, and asset quality trends. Data limitations require caution in interpreting margins and DuPont outputs that depend on revenue and cash flow detail.

Profitability Analysis

ROE_decomposition: Using available data and acknowledging zero revenue reporting: Net profit margin based on ‘ordinary income’ proxy is approx. 73.3% (¥43.8bn / ¥59.7bn), asset turnover using banking convention is better captured via ROA; ROA ≈ 0.21% (¥43.8bn / ¥20.98tn). With financial leverage ≈ 20.3x (assets/equity), an indicative ROE ≈ 4.2% (ROA × leverage), broadly consistent with net income/equity. Note: DuPont output showing 0% is not informative due to unreported revenue. margin_quality: Effective tax rate ≈ 24.0% (¥13.9bn / ¥57.6bn pre-tax). The spread between operating income (¥34.6bn) and ordinary income (¥59.7bn) indicates non-operating contributions (e.g., securities-related income, dividends), which may be more volatile than core net interest and fee income. operating_leverage: Operating income rose 76.3% YoY, outpacing net income growth of 36.7% YoY, implying positive operating leverage. However, the sizable non-operating uplift (ordinary minus operating ≈ ¥25.1bn) suggests part of the improvement stems from markets-related factors or non-core items rather than solely from core cost/income dynamics.

Growth Assessment

revenue_sustainability: Revenue lines are unreported, typical for banks under JGAAP XBRL labeling; growth assessment relies on profit lines. Ordinary income at ¥59.7bn implies stronger topline-like activity, likely from wider interest spreads, increased securities/markets income, or stable fees. profit_quality: Net income up 36.7% YoY to ¥43.8bn. The contribution from non-operating income raises questions about repeatability, especially if driven by valuation gains or lower credit costs. Tax rate appears normalized (~24%), supporting quality of earnings from a tax standpoint. outlook: Sustainability hinges on NIM progression post BoJ policy normalization, credit cost trends, and securities portfolio valuation. If markets-related gains normalize and credit costs revert upward, profit growth could moderate; conversely, a steeper JGB curve and resilient fee income would support earnings.

Financial Health

liquidity: Current/quick ratios are not meaningful for banks; funding stability is better assessed via deposit base and liquidity buffers, which are not disclosed here. Cash and equivalents are unreported. solvency: Total assets: ¥20.98tn; total liabilities: ¥20.44tn; total equity: ¥1.03tn. Leverage is ~20.3x (assets/equity), in line with sector norms. Debt-to-equity ≈ 19.8x (liabilities/equity). Regulatory capital ratios (CET1/Tier 1/Total Capital) are not provided, limiting solvency analysis. capital_structure: Balance sheet composition typical of a regional banking group; equity of ~¥1.03tn provides loss-absorbing capacity. Without RWA-based ratios or unrealized AFS gains/losses, we cannot assess buffers against interest-rate or credit shocks.

Cash Flow Quality

earnings_quality: OCF, investing CF, and financing CF are unreported. For banks, accounting earnings quality is better assessed via net interest income stability, fee income, credit costs, and securities gains—none detailed here. Net income of ¥43.8bn with a normalized tax rate suggests underlying profitability, but visibility into recurring vs. one-off contributions is limited. FCF_analysis: Free cash flow is not a meaningful construct for banks in the same way as for industrials, and FCF is unreported here. Cash generation should be inferred from core banking income and funding costs, which are not disclosed. working_capital: Working capital metrics are not applicable to banks. Asset-liability management (ALM), duration gaps, and deposit stability would be the preferred indicators but are not provided.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are unreported. With EPS at ¥46.03 for the period, there appears to be earnings capacity to support dividends, but without DPS we cannot compute an actual payout ratio. FCF_coverage: FCF coverage is unreported and not a suitable measure for banks. Dividend capacity should be judged against regulatory capital generation and profit after credit costs; these data are absent. policy_outlook: Regional banks typically pursue stable or progressive dividends, subject to capital and earnings visibility. Given profit growth, dividend sustainability looks plausible in principle, but confirmation requires CET1 ratio, profit attribution (core vs. markets), and management guidance, none of which are provided here.

Risk Assessment

Business Risks:

• Net interest margin compression if deposit betas rise faster than asset yields
• Market risk and valuation volatility in the securities portfolio amid rate fluctuations
• Credit risk from SME and regional borrower concentration during economic slowdown
• Fee income softness from muted retail investment flows or weaker corporate activity
• Competitive pressure from megabanks and digital players in core regions

Financial Risks:

• Interest-rate risk in the banking book (duration mismatch and OCI volatility)
• Unrealized losses on JGBs/foreign bonds if yields rise further
• Credit cost normalization from currently low levels
• Capital adequacy sensitivity without disclosed CET1/Tier 1 ratios
• Liquidity and funding cost escalation if market rates reprice deposits quickly

Key Concerns:

• Heavy reliance on non-operating items implied by ordinary vs. operating income gap
• Absence of detailed revenue and cash flow disclosures in this dataset
• Lack of regulatory capital metrics to assess buffer sufficiency

Investment Implications

Key Takeaways:

• Profitability improved: net income ¥43.8bn (+36.7% YoY), operating income ¥34.6bn (+76.3% YoY)
• Ordinary income ¥59.7bn indicates sizable non-operating contributions; sustainability needs scrutiny
• Indicative ROE ~4.2% and ROA ~0.21% given assets ¥20.98tn and equity ¥1.03tn
• Leverage ~20.3x is sector-normal; solvency assessment awaits CET1/Tier 1 disclosure
• Tax rate around 24% suggests normalized tax environment

Metrics to Watch:

• Net interest margin (NIM) and loan-deposit spread trajectory
• Credit costs and NPL/coverage ratios
• Securities portfolio duration, unrealized gains/losses, and OCI sensitivity
• Fee and commission income share within gross profits
• Regulatory capital ratios (CET1 on a fully-loaded basis) and RWA growth
• ALM metrics: interest-rate sensitivity and deposit beta
• Management guidance on dividends and capital policy

Relative Positioning: Within Japanese regional banking peers, Mebuki FG’s asset scale (~¥21tn) and leverage are consistent with large regional groups; profitability appears improving but with a notable contribution from non-operating income, leaving core earnings momentum and capital buffers as key differentiators pending fuller disclosure.

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