| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥633.3B | ¥528.6B | +19.8% |
| Operating Income | - | - | - |
| Ordinary Income | ¥90.5B | ¥65.0B | +39.1% |
| Net Income | ¥62.7B | ¥39.2B | +59.8% |
| ROE | 4.2% | 2.9% | - |
For the fiscal year ended March 2026, ordinary revenues reached ¥633.3B (YoY +¥104.7B +19.8%), ordinary income was ¥90.5B (YoY +¥25.5B +39.1%), and profit attributable to owners of the parent (Net Income) was ¥62.7B (YoY +¥23.5B +59.8%), resulting in higher revenues and substantially higher profits. Expansion of investment income against a backdrop of rising interest rates (+¥90.4B +29.1%) and improvements in securities-related gains and valuation differences strengthened the earnings base. Other comprehensive income improved markedly to ¥178.8B from ¥-61.8B in the prior year, with an increase in unrealized gains on securities of ¥106.0B contributing to qualitative improvement in equity. EPS was ¥207.86 (prior year ¥138.17 +50.4%), and shareholders' equity increased to ¥1,506.3B (prior year ¥1,360.0B +10.8%).
[Revenue] Ordinary revenues were ¥633.3B, up ¥104.7B YoY (+19.8%). Investment income grew substantially to ¥400.8B (prior year ¥310.4B +29.1%), of which interest on loans was ¥257.0B (prior year ¥203.9B +26.0%) and interest and dividends on securities were ¥131.5B (prior year ¥99.7B +31.9%), reflecting yield improvement in a rising-rate environment. Funding costs rose to ¥89.8B (prior year ¥51.2B +75.4%), but net interest income expanded to ¥311.0B, up ¥51.3B YoY. Net fee income was ¥59.7B (prior year ¥60.7B -1.6%), remaining flat; fee income increased to ¥87.2B (prior year ¥84.9B +2.7%) but was offset by an increase of ¥27.5B in fee expenses. Other ordinary income improved to ¥80.8B (prior year ¥64.9B +24.5%), aided by normalization of market-related gains and valuation differences. By segment, Banking contributed ordinary revenues of ¥551.7B (composition 87.1%), Leasing ¥64.9B, Credit Guarantee ¥2.1B, and Other ¥14.7B, indicating high concentration in the Banking segment. Loan balances were ¥21,100.0B (prior year ¥20,315.9B +3.9%), and securities balances were ¥8,515.6B (prior year ¥8,133.7B +4.7%), with asset-side growth providing the base for revenue increases.
[Expenses / Profitability] Ordinary expenses were ¥542.8B, up ¥79.2B YoY (+17.1%), but revenue growth outpaced expense growth, delivering operating leverage. SG&A was ¥215.3B (prior year ¥206.6B +4.2%), reflecting increased digital investment and branch-related costs. Ordinary income was ¥90.5B (prior year ¥65.0B +39.1%), with an ordinary income margin of 14.3% (prior year 12.3% +2.0pt). Extraordinary items included extraordinary losses of ¥0.2B (impairment loss ¥0.1B), an improvement from extraordinary losses of ¥1.2B in the prior year. Profit before income taxes was ¥90.3B (prior year ¥63.8B +41.4%). Corporate taxes were ¥25.0B (prior year ¥19.6B), resulting in an effective tax rate of 27.7% (prior year 30.7%). After deducting profit attributable to non-controlling interests of ¥0.0B, profit attributable to owners of the parent was ¥62.7B (prior year ¥39.2B +59.8%), and net income margin improved to 9.9% (prior year 7.4% +2.5pt). Other comprehensive income was ¥178.8B (prior year ¥-61.8B), with unrealized gains on securities of ¥106.0B, deferred hedge gains/losses of ¥1.1B, and actuarial gains/losses related to retirement benefits of ¥6.4B recorded in other comprehensive income. Overall, the company finished with higher revenues and profits.
The Banking segment reported ordinary revenues of ¥557.7B (external customers ¥551.7B) and segment profit of ¥84.1B, accounting for the majority of group profits. Year-on-year, ordinary revenues expanded, primarily driven by increased investment income. The Leasing segment recorded ordinary revenues of ¥66.0B and segment profit of ¥2.4B, generating stable profits through accumulation of lease assets. The Credit Guarantee segment posted ordinary revenues of ¥8.6B and segment profit of ¥6.3B, maintaining stable earnings through sustained guarantee balances. Other segments (data processing, credit cards, regional trading company, venture capital, etc.) reported ordinary revenues of ¥17.6B and segment profit of ¥2.6B, playing a complementary role. The high revenue concentration in Banking indicates limited diversification of the business portfolio.
[Profitability] Ordinary income margin was 14.3% (prior year 12.3% +2.0pt), and net income margin was 9.9% (prior year 7.4% +2.5pt). ROE was 4.2% (prior year 3.2% +1.0pt), remaining low but improving. Return on assets (ROA) was 0.3% (prior year 0.2%), slightly higher. Net Interest Margin (NIM) is estimated at 1.47%, remaining at a low level. [Cash Quality] Operating Cash Flow / Net Income was 4.22x (¥264.5B ÷ ¥62.7B), indicating strong cash backing of profits. Operating CF subtotal was ¥270.9B, showing solid pre-working-capital cash generation. [Investment Efficiency] Capital expenditures were ¥70.2B, 4.08x depreciation of ¥17.2B, indicating continued proactive investment. Construction in progress was ¥88.8B (prior year ¥25.9B), a large increase reflecting major branch and system projects. Asset turnover was 0.019x, low as typical for banking. [Financial Soundness] Equity Ratio was 4.6% (prior year 4.3% +0.3pt), below the regulatory minimum of 8% on a disclosed-value basis. Net assets were ¥1,506.3B (prior year ¥1,360.0B +10.8%), and retained earnings were ¥1,369.8B (prior year ¥1,322.3B +3.6%), indicating steady internal reserves. Loan-to-deposit ratio was 72.9% (loans ¥21,100.0B ÷ deposits ¥28,950.8B), indicating sufficient liquidity.
Operating CF was ¥264.5B (prior year ¥-427.6B), a significant improvement. Operating CF subtotal was ¥270.9B, aided by increased interest and dividend income and a lower effective tax rate. Corporate tax payments were ¥8.7B (prior year ¥4.7B), including tax refunds of ¥2.3B. On working capital, increases in loans (a cash outflow equivalent to ¥-784.1B in operating CF terms) and increases in deposits (a cash inflow equivalent to +¥478.2B) balanced to absorb net cash outflows. Investing CF was ¥-378.3B (prior year ¥569.7B), reflecting more active securities management and investments in tangible fixed assets of ¥70.2B and intangible fixed assets of ¥13.2B. As a result, free cash flow was ¥-113.8B (prior year ¥142.1B), indicating a phase of front-loaded growth investment. Financing CF was ¥-34.8B (prior year ¥-16.4B), with dividend payments of ¥17.8B and share buybacks of ¥17.0B, partially offset by proceeds from disposal of treasury shares of ¥5.7B. Cash and cash equivalents at period-end were ¥1,862.9B (prior year ¥2,011.5B -¥148.6B), decreased due to investment outflows.
Of ordinary income of ¥90.5B, the core business centered on interest income accounted for the bulk, indicating good earnings quality. Extraordinary items were small (losses of ¥0.2B), suggesting limited impact from one-off factors. Other ordinary income of ¥80.8B includes securities-related gains and valuation differences, which contain market-sensitive variability. Operating CF of ¥264.5B is 4.22x net income of ¥62.7B, showing strong cash backing for profits. The difference between other comprehensive income ¥178.8B and net income ¥62.7B (¥116.1B) consists of other comprehensive income, primarily unrealized gains on securities of ¥106.0B, with valuation gains improving the quality of equity. Loan loss reserves were ¥83.9B (prior year ¥89.1B -¥5.8B), decreasing and easing provisioning burden. The gap between cash generation and accounting profits is small, and from an accrual perspective, earnings quality is sound.
Full year forecast plans ordinary revenues of ¥651.0B (adding ¥17.7B to first-half results of ¥633.3B), ordinary income of ¥121.0B (adding ¥30.5B to first-half results of ¥90.5B), and profit attributable to owners of the parent of ¥71.0B (adding ¥8.3B to first-half results of ¥62.7B). Based on first-half results, progress rates are: ordinary revenues 97.3%, ordinary income 74.8%, and net income 88.3%; ordinary revenues and net income are progressing ahead of plan. Ordinary income is expected to face seasonal expense recognition and additional investments in the second half. Year-on-year, the plan targets ordinary income +33.7% and net income +13.2%, assuming normalization of interest rate environment and improved asset management efficiency. EPS forecast is ¥242.85, and dividend forecast is ¥49.0 (Payout Ratio 20.2%), indicating a smoothing from the first-half annualized DPS of ¥84 implied by interim results.
Dividends paid were ¥84 per share annually (interim ¥28, year-end ¥56), yielding a payout ratio of 40.4% (¥84 ÷ ¥207.86). This is a substantial increase from the prior year annual dividend of ¥17.5, reflecting profit-driven shareholder returns. Share buybacks amounted to ¥17.0B, increasing treasury stock to ¥22.5B (prior year ¥7.7B). Total shareholder return (dividends plus buybacks) was ¥35.8B, yielding a Total Return Ratio of 57.1% (¥35.8B ÷ ¥62.7B), allocating more than half of profits to shareholder returns. However, with FCF at ¥-113.8B, short-term funding relies on internal reserves and investment cash. The full-year forecasted dividend of ¥49 indicates a reduction from the first-half annualized ¥84, suggesting a policy shift to prioritize capital quality improvement and growth investment. The payout ratio on a full-year forecast basis is 20.2%, within an appropriate range.
Interest Rate Risk: NIM of 1.47% is low; continued increases in funding costs could compress margins. Securities balances of ¥8,515.6B (26.0% of total assets) are sensitive to valuation changes from interest-rate movements, and rising rates could enlarge unrealized losses. The large improvement in other comprehensive income reflects favorable market conditions and could exert downward pressure on equity during a reversal.
Credit Risk: With loan balances of ¥21,100.0B and loan loss reserves of ¥83.9B (coverage ratio 0.40%), provisioning levels are relatively low. In the event of an economic downturn or sector-specific credit deterioration, additional provisioning could pressure profits. While the loan-to-deposit ratio of 72.9% is healthy, regional economic stagnation could reduce loan demand and slow top-line growth.
Investment Recovery Risk: Construction in progress of ¥88.8B (prior year ¥25.9B) indicates major projects underway; delays or cost overruns in branch reorganization or system upgrades could increase depreciation burdens or trigger impairment losses. With CapEx/Depreciation at 4.08x and continued aggressive investment, early realization of investment benefits is key to maintaining capital efficiency.
Profitability / Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Net Income Margin | 9.9% | 11.9% (7.2%–35.4%) | -2.0pt |
Net income margin is 2.0pt below the industry median of 11.9%, placing profitability in the mid-to-lower range within the industry.
Growth / Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 19.8% | 10.1% (7.3%–12.1%) | +9.8pt |
Revenue growth outperformed the industry median of 10.1% by 9.8pt, placing the company toward the top of the industry in top-line growth.
※Source: Company compilation
Expansion of investment income capturing rising interest rates and a large improvement in other comprehensive income have concurrently enhanced earnings power and the quality of equity. Net interest income increased by ¥51.3B YoY, and operating leverage drove ordinary income up 39.1%. Other comprehensive income of ¥178.8B (prior year ¥-61.8B) was mainly due to an improvement in unrealized gains on securities of ¥106.0B, indicating structural changes that strengthen equity buffers going forward.
Construction in progress of ¥88.8B (prior year ¥25.9B) indicates major investments underway, with branch and system investments laying the groundwork for medium-term efficiency improvements and customer base expansion. With CapEx/Depreciation = 4.08x, the proactive investment stance continues, and post-completion revenue contributions will be the next step for capital efficiency. However, with FCF at ¥-113.8B and investment leading the cycle, progress on investment recovery and timing of cash-flow normalization are focal points.
Dividend policy shows smoothing from an interim annualized ¥84 to a full-year forecast of ¥49, reflecting a policy shift prioritizing capital quality improvement and growth investments. Total Return Ratio of 57.1% is high, but in a negative FCF phase, sustainability should be monitored—the pace of investment recovery and FCF normalization will determine the sustainability of shareholder returns.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any particular security. Industry benchmarks are company-compiled reference information based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.