About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Net Sales | ¥16.19B | ¥14.24B | +13.7% |
| Operating Income | ¥15.21B | ¥13.63B | +11.6% |
| Ordinary Income | ¥79.52B | ¥64.20B | +23.9% |
| Profit Before Tax | ¥79.20B | ¥63.64B | +24.5% |
| Income Tax Expense | ¥23.50B | ¥19.18B | +22.5% |
| Net Income | ¥14.89B | ¥13.62B | +9.3% |
| Net Income Attributable to Owners | ¥55.03B | ¥44.31B | +24.2% |
| Total Comprehensive Income | ¥110.61B | ¥30.74B | +259.8% |
| Basic EPS | ¥48.24 | ¥38.05 | +26.8% |
| Diluted EPS | ¥48.24 | ¥38.05 | +26.8% |
| Dividend Per Share | ¥13.00 | ¥13.00 | +0.0% |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Property, Plant & Equipment | ¥169.57B | ¥167.71B | +¥1.87B |
| Intangible Assets | ¥29.70B | ¥18.16B | +¥11.54B |
| Total Assets | ¥24.81T | ¥24.79T | +¥15.60B |
| Total Liabilities | ¥23.42T | ¥23.50T | ¥-76.76B |
| Total Equity | ¥1.38T | ¥1.29T | +¥92.36B |
| Item | Value |
|---|---|
| Net Profit Margin | 339.9% |
| Debt-to-Equity Ratio | 16.91x |
| Effective Tax Rate | 29.7% |
| Item | YoY Change |
|---|---|
| Net Sales YoY Change | +25.2% |
| Operating Revenues YoY Change | +13.7% |
| Operating Income YoY Change | +11.6% |
| Ordinary Income YoY Change | +23.8% |
| Net Income YoY Change | +9.3% |
| Net Income Attributable to Owners YoY Change | +24.1% |
| Total Comprehensive Income YoY Change | +259.7% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 1.14B shares |
| Treasury Stock | 9.83M shares |
| Average Shares Outstanding | 1.14B shares |
| Book Value Per Share | ¥1,220.46 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥13.00 |
| Year-End Dividend | ¥16.00 |
| Item | Forecast |
|---|---|
| Ordinary Income Forecast | ¥151.00B |
| Net Income Attributable to Owners Forecast | ¥103.00B |
| Basic EPS Forecast | ¥90.64 |
| Dividend Per Share Forecast | ¥20.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Verdict: Solid topline and bottom-line growth with strong efficiency, but profitability quality depends on financial income and very low NIM; capital efficiency (ROE/ROIC) remains subdued for a bank of this scale. Revenue rose 25.2% YoY to 161.9, while ordinary income increased 23.8% to 795.2, highlighting broad-based strength in core banking earnings. Net income advanced 24.1% YoY to 550.3, and profit before tax was 792.0 with an effective tax rate of 29.7%. Total comprehensive income surged to 1,106.1, far above net income, indicating large unrealized gains in OCI (likely from securities valuation), a swing factor for capital. Operating income was 152.1 (+11.6% YoY), though for banks ordinary income is the more relevant profitability indicator. Asset scale is very large at 248,087.4 with equity of 13,849.6, implying high financial leverage (D/E 16.91x), which is structurally normal for banks but still a risk in stress scenarios. ROE is 4.0%, modest versus global/best-in-class domestic targets (>8%), and ROIC is 0.8%, underscoring low capital efficiency. Banking KPIs show NIM of 0.7% (weak), LDR of 86.7% (healthy), and CIR of 30.8% (very efficient), pointing to tight cost control offsetting margin pressure. Loan-to-deposit positioning is prudent, suggesting manageable liquidity risk under normal conditions. We cannot assess operating cash flow quality because cash flow statements were not disclosed; this is a key limitation. Dividend payout ratio is calculated at 60.3%, near the upper end of typical sustainability thresholds, so earnings resilience and capital ratios will be important for dividend continuity. Margin comparison in basis points versus last year is not computable due to missing prior-period margin data; however, the cost-to-income ratio at 30.8% suggests structurally high operating leverage to income. The large gap between total comprehensive income and net income raises volatility considerations tied to interest rate movements and securities valuation. Overall, Q2 results show healthy earnings momentum and efficiency, balanced by structural NIM weakness and low capital efficiency. Going forward, interest rate normalization, credit cost trends, and OCI sensitivity will drive earnings and capital. With many line items unreported (cash flow, segment detail), conclusions rely on the disclosed banking KPIs and headline P&L figures.
ROE decomposition (DuPont): ROE 4.0% = Net Profit Margin 339.9% × Asset Turnover 0.001 × Financial Leverage 17.91x. The dominant driver is high financial leverage (typical for banks) combined with extremely low asset turnover, reflecting bank accounting where reported revenue is small relative to assets. Net profit margin appears optically high because the revenue definition in banking excludes much of balance-based income; ordinary income is a better proxy for recurring profitability. The most material headwind to ROE is the very low asset turnover (0.001), which constrains ROE despite high leverage. Business context: NIM is 0.7%, indicating lean spreads; the excellent cost-to-income ratio (30.8%) partly offsets this through operating leverage from cost control. Sustainability: cost efficiency looks sustainable if discipline continues, but NIM expansion is uncertain and sensitive to interest rate paths; OCI-driven gains are non-cash and reversible. Watch for signs of negative operating leverage if income growth slows while costs reflate. No evidence of SG&A growth outpacing revenue is available; cost-to-income at 30.8% implies costs are well contained relative to income this period.
Topline growth of 25.2% and ordinary income +23.8% indicate healthy momentum in core banking activities and market-related income. Net income +24.1% confirms broad-based earnings growth with a stable tax rate (~29.7%). Given NIM of 0.7%, income growth likely reflects volume expansion (loans) and/or non-interest/market income rather than spread widening. Total comprehensive income significantly outpacing net income signals material securities valuation gains; this growth is non-recurring and rate-sensitive. Without segment detail or equity-method income disclosure, we cannot parse the mix between net interest, fees, and market gains. Revenue sustainability will depend on credit demand, fee income resilience, and the interest rate environment; a soft landing or gradual BoJ normalization could support spreads, while abrupt rate moves could pressure OCI and capital. Outlook: maintaining a CIR near 30% gives buffer against modest revenue volatility; however, sustaining >20% YoY profit growth is unlikely without either NIM improvement or continued market tailwinds. Credit cost disclosures are absent; any normalization in provisions could dampen growth. We see near-term earnings supported by cost discipline and balance-sheet scale, with medium-term growth hinging on rate normalization, loan growth in the core region, and fee diversification.
Leverage is high with a debt-to-equity ratio of 16.91x; this triggers a formal warning threshold (>2.0), though high leverage is structurally normal for banks. Liquidity positioning appears sound: deposits at 201,404.3 and loans at 174,653.0 yield an LDR of 86.7%, within the 70–90% optimal range, implying a conservative funding buffer. We cannot compute current/quick ratios (not meaningful for banks, and data unreported). Maturity mismatch risk assessment is limited without the securities duration ladder and wholesale funding breakdown; deposit-heavy funding generally mitigates near-term rollover risk. Capital adequacy (e.g., CET1 ratio) is not disclosed here; thus, our solvency view relies on equity scale and OCI behavior—note that large OCI swings can impact capital. No off-balance sheet obligation details (e.g., guarantees, derivatives) are provided; exposure could be material for a financial group. Intangible assets are small (296.9) relative to equity, implying limited goodwill risk.
Operating cash flow and free cash flow are unreported; OCF/Net Income and FCF coverage cannot be assessed. Earnings quality signals are mixed: strong ordinary income and low CIR suggest robust core efficiency, but the large gap between total comprehensive income (1,106.1) and net income (550.3) indicates material reliance on mark-to-market or valuation changes in OCI, which are non-cash and reversible. Working capital dynamics are not applicable in a traditional sense for banks; we have no evidence of end-period income smoothing via one-off releases or deferrals. Without cash flow data, we cannot confirm cash conversion or the impact of securities purchases/sales on liquidity.
The calculated payout ratio is 60.3%, near the upper bound of the <60% sustainable benchmark and merits monitoring. Cash flow and capital data (FCF, CET1) are not available, so we evaluate coverage against earnings: current earnings growth supports the payout for now. Sustainability hinges on stability of core net income (not OCI) and future credit costs; if profit normalizes lower or OCI losses reduce capital, payout flexibility may be required. Policy outlook: Japanese regional/mega-regional banks often target progressive dividends within capital constraints; absent CET1 disclosure, we assume a cautious stance on increases. FCF coverage and total dividends paid are unreported; no view on repurchase capacity.
Business Risks:
Financial Risks:
Key Concerns:
Key Takeaways:
Metrics to Watch:
Relative Positioning: Versus Japanese regional mega-regional peers, Yokohama FG shows superior cost efficiency (CIR ~31%) and prudent LDR, but profitability is constrained by a very low NIM and ROE near the lower-mid of the peer range; earnings are more sensitive to market valuation swings as implied by large OCI contributions.
This analysis was auto-generated by AI. Please note the following:
| Capital Stock | ¥150.08B | ¥150.08B | ¥0 |
| Capital Surplus | ¥204.72B | ¥204.72B | ¥0 |
| Retained Earnings | ¥875.86B | ¥839.13B | +¥36.73B |
| Treasury Stock | ¥-9.77B | ¥-1.65B | ¥-8.12B |
| Owners' Equity | ¥1.37T | ¥1.29T | +¥83.51B |