| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥85.2B | ¥61.3B | +23.9% |
| 営業利益 | ¥71.6B | ¥49.3B | +45.2% |
| 経常利益 | ¥309.1B | ¥102.8B | +200.6% |
| 純利益 | ¥71.1B | ¥49.0B | +45.1% |
| ROE | 1.6% | 1.4% | - |
The fiscal year ended March 2026 delivered significant revenue and profit growth: Revenue ¥85.2B (YoY +¥23.9B +23.9%), Operating Income ¥71.6B (YoY +¥22.3B +45.2%), Ordinary Income ¥309.1B (YoY +¥206.3B +200.6%), Net Income ¥71.1B (YoY +¥22.1B +45.1%). Due to banking business characteristics, Ordinary Income substantially exceeded Operating Income; the +200.6% increase in Ordinary Income was primarily driven by expanded investment income (+¥153.6B) and reversals of loan loss provisions (previous year +¥7.1B → current year ▲¥17.7B). Comprehensive Income reached ¥836.3B, 11.8x Net Income, with Unrealized Gains on Securities +¥469.2B and Deferred Hedge Gains +¥104.4B significantly boosting Equity.
【Revenue】 Revenue (disclosed as Ordinary Revenue for banking business) was ¥85.2B (YoY +23.9%). By segment: Banking Business ¥1,131.0B (+23.8%), Leasing Business ¥68.6B (+10.6%), Others ¥55.1B (+60.6%). The Banking Business accounts for the majority of consolidated Ordinary Revenue; expanded interest income was the main driver. Investment income was ¥737.8B (YoY +¥153.6B +26.3%), led by loan interest income ¥527.3B (+¥129.0B) and interest on deposits and loans ¥180.3B (+¥121.1B). Loan balances were 4兆9,412B円 (YoY +1.0%) with only slight growth, but yield improvement in a rising-rate environment contributed materially. Fee and commission income was ¥180.1B (YoY ▲¥2.4B ▲1.3%), slightly down.
【Profitability】 Operating Income ¥71.6B (YoY +45.2%) resulted in an operating margin of 84.0% (up +23.5pt from 60.4%), an extremely high level. SG&A was ¥13.7B (SG&A ratio 16.0%), up from ¥12.0B prior year, but revenue growth outpaced expenses, yielding positive operating leverage. Ordinary Income ¥309.1B (+200.6%) was driven by non-operating items contributing +¥237.5B to income. Non-operating income ¥0.1B and non-operating expenses ¥0.0B were limited; in banking, net interest income (investment income less funding costs) constitutes the core of Ordinary Income. Funding costs were ¥211.8B (YoY +¥132.0B +165.5%), a large increase, but investment income expansion offset this and estimated Net Interest Margin (NIM) secured at about 1.06% (estimate: Net Interest Income ¥526.0B ÷ Total Assets ¥7.17兆). Loan loss provision expense reversed to ▲¥17.7B (prior year +¥7.1B), improving credit costs and boosting profits. Special losses of ¥9.7B (including impairment losses ¥1.3B) were recorded, but Pre-tax Income was ¥299.4B (from ¥97.3B prior year +207.8%); after income taxes of ¥81.3B, Net Income attributable to owners of the parent was ¥218.1B (+139.7%). Comprehensive Income ¥836.3B included Unrealized Gains on Securities +¥469.2B from improved market conditions on held bonds and Deferred Hedge Gains +¥104.4B reflecting hedge accounting valuation changes. In conclusion, revenue and profits increased materially, with double-digit growth in Operating, Ordinary, and Net Income.
The Banking segment reported Ordinary Revenue ¥1,131.0B (prior ¥913.9B +23.8%) and Segment Profit ¥307.4B (prior ¥102.8B +199.0%), a substantial increase. Investment income ¥736.9B (prior ¥582.7B +26.5%) was the main revenue driver, and SG&A reduction to ¥450.0B (prior ¥477.5B ▲5.8%) supported profit. The Leasing segment reported Ordinary Revenue ¥68.6B (+10.6%) and Segment Profit ¥0.4B (prior ¥1.8B, significant decline), with depreciation of lease assets ¥1.6B weighing on earnings. Other segments (credit card, collection agency, data processing, fund management, etc.) recorded Ordinary Revenue ¥55.1B (+60.6%) and Segment Profit ¥2.9B (prior ¥2.8B +3.6%), steady. After inter-segment adjustments, consolidated Ordinary Income ¥309.1B is almost entirely attributable to the Banking Business, indicating a highly concentrated business portfolio.
【Profitability】Operating margin 84.0% (prior 60.4%) reflects banking business characteristics, making simple comparisons with non-financial corporates difficult. ROE 1.6% (prior 2.5%) is low, indicating that Net Income ¥218.1B is small relative to estimated average Equity (approx. ¥4,439B). Estimated NIM approx. 1.06% is below industry standard (~1.5%), indicating room for margin improvement. 【Cash Quality】Operating Cash Flow/Net Income is 25.6x (Operating CF ¥1,822.1B ÷ Net Income ¥71.1B), extremely high, with bank-account lending/deposit movements largely contributing to working capital factors. The accrual ratio is ▲16.6% ((Operating CF subtotal ¥1,823.5B − Net Income ¥71.1B) ÷ Net Income), negative, indicating very strong cash backing of earnings. 【Investment Efficiency】Capex ¥31.0B / Depreciation ¥32.4B = 0.96x, focused on maintenance and renewal. Goodwill amortization ¥1.7B (estimate: prior year 1,573百万円 → current year 1,408百万円 decrease) is negligible at 0.1% of Operating CF. 【Financial Soundness】Equity Ratio 6.0% (prior 5.2%) improved, exceeding domestic banking threshold of 4% but below industry benchmark (8%+). Current Ratio 998.7%, Quick Ratio 998.7% indicate no short-term liquidity concerns. D/E 15.63x reflects the high-leverage nature of the banking business model. LDR (Loans ¥4兆9,412B円 / Deposits ¥5兆9,893B円) is 82.5%, within an appropriate range.
Operating CF ¥1,822.1B (YoY +273.4%)—with Operating CF subtotal ¥1,823.5B and corporate tax payments ¥1.4B being minimal—was almost entirely cash inflow. The swing from prior year ▲¥1,051.1B to a large improvement indicates that bank-account movements in loans and deposits were monetized. Investing CF was +¥39.3B (prior +¥1,175.8B), remaining positive even after ¥31.0B of capex. Free CF ¥1,861.3B (prior ▲¥105.1B) is 34.5x the dividend (¥54.0B), providing ample capacity for shareholder returns and capital buildup. Financing CF ▲¥65.8B (prior ▲¥49.6B) was mainly due to dividend payments ▲¥53.8B and share buybacks ▲¥11.2B (prior ▲¥0.1B). Cash and equivalents increased from ¥6,083B to ¥7,879B, +¥1,796B.
Of Ordinary Income ¥309.1B, the gap above Operating Income ¥71.6B (+¥237.5B) stems from the banking cashflow structure (net interest income treated as non-operating), and is not a one-off factor. However, the reversal of loan loss provisions ▲¥17.7B (prior +¥7.1B, difference ▲¥24.8B) indicates improved credit conditions but its sustainability depends on economic and credit cycles. The divergence between Comprehensive Income ¥836.3B and Net Income ¥71.1B (+¥765.2B) is largely explained by Unrealized Gains on Securities +¥469.2B, Deferred Hedge Gains +¥104.4B, and Remeasurements of Retirement Benefits +¥44.6B. Since valuation differences are market-dependent, Net Income should be emphasized as a persistent earnings measure. Special losses of ¥9.7B represent 13.6% of Net Income and are limited. Excluding non-operating items and valuation differences, Operating Income grew +45.2%, reflecting top-line growth and cost control.
Guidance for FY March 2027: Ordinary Income ¥280.0B (YoY ▲9.4%), Net Income attributable to owners of the parent ¥230.0B (+5.5%), EPS ¥94.37 (prior ¥89.42 +5.5%). The projected decline in Ordinary Income likely assumes the loss of the loan loss provision reversal benefit that materially contributed this year and incorporates a conservative assumption of NIM compression. Net Income guidance is a slight increase and is consistent if special items normalize. Progress rate (Ordinary Income ¥309.1B / Full-year forecast ¥280.0B) is 110.4%, already exceeded, but the company may assume normalization of credit costs or reversal of one-off income in H2. Forecast dividend ¥15.00 (post-split basis) corresponds to ¥75 in pre-split terms. Actual dividend was ¥135 (interim ¥50 + year-end ¥85); the company notes that pre-split FY2027 forecast is ¥150. Guidance achievement hinges on maintaining NIM, controlling credit costs, and bolstering fee income.
Annual dividend ¥135 (interim ¥50 + year-end ¥85, including a ¥10 commemorative dividend in the year-end), Payout Ratio 59.3%. Cash dividends paid ¥53.8B versus Free CF ¥1,861.3B yield 34.5x coverage, indicating very high dividend sustainability. Share buybacks ¥11.2B (prior ¥0.1B) bring total shareholder return to ¥65.0B, Total Return Ratio 91.4% (Total return ¥65.0B ÷ Net Income ¥71.1B). A 5-for-1 stock split was implemented on April 1, 2026; the FY2027 dividend forecast ¥15.00 (post-split) equals ¥75 pre-split. The company disclosure states pre-split annual dividend is ¥150, implying a ¥15 increase from actual ¥135 and indicating a policy to raise dividends. Payout Ratio 59.3% is appropriate for the banking business, and the company appears to balance dividend distribution with the need to improve Equity Ratio 6.0% through internal retention. Historical timing of dividend initiation and progressive dividend history are unknown, but the commemorative dividend this period signals a shareholder-friendly stance.
Interest margin compression risk: With estimated NIM approx. 1.06% below industry standard ~1.5%, if deposit rates rise such that funding cost growth outpaces loan yield improvement, Net Interest Income could shrink. The composition of time deposits within Deposits ¥5兆9,893B円 and the fixed/variable rate mix of Loans ¥4兆9,412B円 are unknown; given the prior sharp rise in funding costs (YoY +¥132.0B +165.5%), further rate moves could materially increase expenses and pressure profits.
Credit cost reversal risk: Loan loss provision expense reversed from prior +¥7.1B to current ▲¥17.7B, adding +¥24.8B to Ordinary Income. Loan loss reserve balance decreased to ¥208.4B (prior ¥249.2B), with a reserve-to-loans ratio of 0.42%, low. In a recession or sector-specific credit deterioration (real estate, SMEs, etc.), increased provisioning may be required, exerting downward pressure on profits.
Low Equity Ratio risk: Equity Ratio 6.0% meets domestic threshold 4% but is below industry benchmark 8%+, leaving limited capital buffer for Basel III finalization or stress test responses. Expansion of risk assets (loans, securities) or reversal of Unrealized Gains on Securities could reduce equity, potentially forcing capital raising or increased internal retention and impacting dividend policy from a regulatory or rating perspective.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 84.0% | 14.6% (7.2%–39.4%) | +69.3pt |
| 純利益率 | 83.4% | 11.9% (7.2%–35.4%) | +71.5pt |
Both Operating Margin and Net Margin substantially exceed industry medians, but differences in the definition of Ordinary Revenue in banking (exclusion of investment income from the sales base) make simple comparisons difficult.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 23.9% | 10.1% (7.3%–12.1%) | +13.8pt |
Revenue growth rate exceeds the industry median by +13.8pt, driven by expanded investment income in a rising interest-rate environment.
※Source: Company compilation
To assess whether the earnings increase from the rising-rate environment is temporary, monitor quarterly NIM trends and changes in the spread between loan yields and deposit costs. If the narrowing trend between investment income +¥153.6B and funding costs +¥132.0B persists, the FY2027 Ordinary Income guidance (▲9.4%) would be supported.
The loan loss provision reversal effect ▲¥17.7B (Ordinary Income uplift +¥24.8B) is likely temporary from credit cycle improvement; the reserve ratio 0.42% on Loans ¥4兆9,412B円 is low. In a normalization of provisioning amid economic or credit deterioration, profit growth could slow. Of Comprehensive Income ¥836.3B, Unrealized Gains on Securities +¥469.2B are market-dependent, so sustainable equity accumulation requires Net Income-based growth.
Total Return Ratio 91.4% (dividends + buybacks ¥65.0B / Net Income ¥71.1B) and Free CF ¥1,861.3B with 34.5x coverage indicate shareholder return capacity, but improvement of Equity Ratio 6.0% and internal retention needs must be balanced. FY2027 dividend forecast ¥15.00 (post-split; pre-split ¥150) implies an +11.1% increase from actual ¥135, suggesting intent to maintain progressive dividends.
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings disclosure data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial disclosures. Investment decisions are your responsibility; consult a professional advisor as needed.