| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥924.6B | ¥704.4B | +31.3% |
| Operating Income | - | - | - |
| Ordinary Income | ¥170.9B | ¥112.0B | +52.6% |
| Net Income | ¥120.2B | ¥76.5B | +57.3% |
| ROE | 5.5% | 3.9% | - |
For the fiscal year ended March 2026, the company achieved significant top- and bottom-line growth with Ordinary Income (Revenue) of ¥924.6B (YoY +¥220.0B +31.3%), Ordinary Income of ¥170.9B (YoY +¥58.9B +52.6%), and Net Income of ¥120.2B (YoY +¥43.9B +57.3%). The Banking segment accounted for 87.6% of Ordinary Income (¥810.1B), and expansion in fund management income amid a rising interest rate environment (¥623.6B, estimated increase equivalent to +¥195B YoY) drove performance. Meanwhile, funding costs surged to ¥169.9B, limiting improvement in net interest margin (NIM). Non-operating items included equity-method investment gains of ¥0.9B and a net special loss of ¥1.7B, but the conversion from Ordinary Income to Net Income was stable. ROE improved to 5.5%, but capital constraints—Equity Ratio 3.2%—and a rising cost-to-income ratio remain challenges for profitability efficiency.
Revenue (Ordinary Income) rose sharply to ¥924.6B (YoY +31.3%). By segment, Banking was core at ¥810.1B (87.6% of revenue), followed by Leasing ¥89.2B (9.6%), Credit Guarantee ¥9.8B (1.1%), and Others ¥17.0B (1.8%). Fund management income in Banking was ¥623.6B, with interest income expanding amid higher loan balances (YoY +¥187.8B +4.6%) and rising rates. Loan interest was ¥415.1B and securities interest/dividends estimated at ¥130.9B, both up substantially YoY. Deposit interest surged to ¥105.3B, pressuring margins due to higher funding costs. Fee income was solid at ¥156.6B. Securities holdings increased by YoY +¥188.5B (+15.6%), contributing to market-related income.
On the expense side, Ordinary Expenses expanded to ¥753.7B (estimated YoY increase equivalent to +¥161B). The largest increase was funding costs, which jumped to ¥169.9B due to deposit repricing and higher market funding costs. SG&A was ¥396.7B, up about +¥40B YoY, worsening the cost-to-income ratio to approximately 72.7%. SG&A growth outpaced gross profit growth, limiting operating leverage. Credit-cost related provisioning pace slowed; allowance balance decreased to ¥232.3B (prior year ¥251.9B). Special items were minor net losses of ¥1.7B including impairment losses of ¥0.3B. Pre-tax income of ¥169.2B less corporate taxes ¥45.6B (effective tax rate 27.0%) resulted in Net Income of ¥120.2B (YoY +57.3%). In summary, the bank achieved revenue and profit growth benefiting from rising rates, but higher funding costs and deteriorating cost efficiency constrained margin improvements.
The Banking segment dominated with Ordinary Income of ¥810.1B, benefiting from deposit and lending operations in the rising rate environment. Leasing produced Ordinary Income of ¥89.2B and is positioned as a complementary group business. Credit Guarantee was ¥9.8B, a small but stable revenue source. Others were ¥17.0B, including Toho IT Human Solutions Co., Ltd. (established July 2025). Toho Securities Clearing Co., Ltd. completed liquidation in January 2026, streamlining the composition. Intersegment transactions of ¥41.7B were eliminated. Revenue concentration in Banking at 87.6% is high, highlighting scope for further business diversification.
Profitability: Net profit margin is 13.0% (Net Income ¥120.2B / Ordinary Income ¥924.6B), improved +2.2pt YoY. Expansion of interest income contributed, but higher funding costs and weaker cost efficiency capped margin upside. ROE improved to 5.5% (+1.8pt YoY) but remains below industry benchmarks and hurdle rates (8–10%). DuPont decomposition of ROE is Net profit margin 13.0% × Total asset turnover 0.014 × Financial leverage 31.0x, indicating that low asset turnover is suppressing ROE despite banking’s high leverage. Cash Quality: Operating Cash Flow (OCF) was -¥903.0B, mainly due to outflows from increased loan and securities investments—structural to banking. OCF/Net Income is -7.51x; Free Cash Flow is -¥2,852.3B, a large negative, but in banking an OCF negative year does not necessarily imply deteriorating earnings quality when asset expansion is the cause. Continuous monitoring is required. Investment Efficiency: Capital expenditures were ¥25.2B (¥-8.6B YoY), indicating restraint. Depreciation was ¥46.2B, with CapEx/Depreciation ratio 0.55x, underscoring a capex-conservative stance. Financial Soundness: Equity Ratio 3.2% is well below regulatory minimum of 8%, highlighting capital adequacy risk. Total assets ¥6,742.38B versus equity ¥217.75B yields a debt-to-equity multiple of 30.0x, indicating high leverage. Loan-to-deposit ratio was 73.6% (Loans ¥4,227.2B / Deposits ¥5,742.8B), within standard liquidity ranges, but reliance on market funding (Negotiable Certificates of Deposit ¥416.2B, Borrowings ¥237.6B) presents funding cost upside risk under rising rates.
Operating Cash Flow was -¥903.0B, narrowing from -¥2,071.8B the prior year but still a significant negative. The primary driver was increased deployment into loans and securities—structural for balance sheet expansion in banking. Subtotal (pre-tax profit + non-cash items) was -¥877.9B, with corporate tax payments of ¥25.5B deducted. Investing Cash Flow was -¥1,949.3B; tangible asset acquisitions ¥25.2B and intangible asset acquisitions ¥12.2B were restrained, while expansion of securities investments and related asset investments were the main outflows. Financing Cash Flow was -¥29.5B, primarily dividend payments of ¥29.97B. No share buybacks were executed; lease debt repayments of ¥0.1B were recorded. Free Cash Flow was -¥2,852.3B, a large negative, but in a banking asset expansion phase this is not necessarily abnormal. Given capital constraints, careful cash management is needed to balance dividends and growth investments. Cash and cash equivalents at period end were ¥946.21B, down ¥288.18B YoY, indicating a shrinking liquidity buffer.
Ordinary Income ¥170.9B translated to Net Income ¥120.2B, with an Ordinary-to-Net conversion ratio of 70.3%, within a normal range. Special items were a minor net loss of ¥1.7B, including impairment losses ¥0.3B and fixed asset disposal losses ¥1.6B, indicating limited transient impacts. Non-operating included equity-method investment gains ¥0.9B, showing stable associate contributions. Comprehensive income was ¥234.5B, substantially above Net Income ¥120.2B, driven by Other Comprehensive Income of ¥110.9B. Components: Deferred hedge gain +¥127.2B, Securities valuation difference -¥46.4B, Remeasurements related to retirement benefits +¥30.1B—valuation gains on interest rate hedges boosted comprehensive income. Conversely, securities valuation deficits reflect bond price declines from rising rates. On accruals, accrued revenue (accounts receivable) rose to ¥85.0B (YoY +¥26.7B), widening timing differences between accrual profits and cash receipts. Allowance for loan losses decreased to ¥232.3B (prior year ¥251.9B), easing credit cost burdens, but provisioning risk during economic downturns remains. Overall Ordinary-level profits are stable, but divergence between comprehensive and net income, accumulation of accrued revenue, and large divergence from OCF are points to monitor for earnings quality.
Full Year guidance: Ordinary Income ¥1,042.0B (current performance ¥924.6B, progress 88.7%), Ordinary Income ¥196.0B (current ¥170.9B, progress 87.2%), Net Income ¥130.0B (current ¥120.2B, progress 92.5%). The plan assumes continued expansion of interest income, targeting Ordinary Income +14.7% and Net Income +8.1% YoY. Based on current results, Ordinary Income is ¥25.1B below target, but there may be upside potential in Q4. Net Income achievement rate is high at 92.5%; if tax burden and cost control remain within plan, targets are attainable. Dividend guidance is annual ¥10.5 per share, below this year’s ¥17, suggesting a priority on capital accumulation. Forecast EPS ¥52.03 vs. current EPS ¥49.44 (achievement rate 95.0%). To meet forecasts, Q4 needs incremental Ordinary Income +¥25.1B and Net Income +¥9.8B, relying on additional expansion of interest income and cost containment.
Annual dividend was ¥17 (interim ¥7, year-end ¥10), a large increase from ¥4 prior year. Payout Ratio is 30.2% (Total dividends ¥29.97B / Consolidated Net Income ¥120.2B), at an appropriate level and sustainable relative to profit. No share buybacks were executed; Total Return Ratio equals the payout ratio. Next year’s dividend guidance is ¥10.5, below this year, consistent with prioritizing capital accumulation given Equity Ratio 3.2%. Though Free Cash Flow is -¥2,852.3B versus total dividends ¥29.97B, in banks FCF can be negative during asset expansion phases; dividend funding comes from Net Income and existing cash. With cash balances ¥946.2B and retained earnings ¥173.6B, short-term dividend-paying capacity is not a concern, but balancing capital build-up and dividends requires sustained profit growth and risk-asset management.
Capital Adequacy Risk: Equity Ratio 3.2% is far below regulatory minimum of 8%, leaving a thin capital buffer. Under high leverage (debt-to-equity 30.0x), stress absorption capacity is limited. Continued expansion of loans and securities without sufficient capital accumulation could trigger regulatory or investment constraints.
Interest Rate & Market Risk: Fund management income ¥623.6B versus funding costs ¥169.9B leaves NIM at a low level. Continued rise in deposit beta and market funding costs limits margin improvement. Of securities holdings ¥1,398.0B, valuation difference is -¥46.4B, reflecting bond price declines from rising rates. Unrealized losses can erode capital and create realized loss risk on disposals.
Cost Efficiency Risk: SG&A ¥396.7B (+¥40B YoY) and cost-to-income ratio deteriorating to ~72.7%. If SG&A growth outpaces gross profit persistently, ROE improvement will be difficult. Delays in IT investment, branch optimization, or other structural reforms risk entrenching a relative profitability disadvantage.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Net profit margin | 13.0% | 11.9% (7.2%–35.4%) | +1.1pt |
Net profit margin exceeds the industry median by +1.1pt, indicating standard profitability for a bank.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth (YoY) | 31.3% | 10.1% (7.3%–12.1%) | +21.2pt |
Revenue growth +31.3% substantially outperformed the industry median +10.1%, reflecting outsized revenue expansion in the rising rate environment.
※Source: Company aggregation
Revenue expansion in a rising rate environment was notable, achieving Ordinary Income +52.6% and Net Income +57.3%. Increased loans and securities raised the base for future interest income, but low NIM and higher funding costs constrain margin improvement. ROE 5.5% improved YoY but remains below industry norms, indicating room to enhance capital efficiency.
Equity Ratio 3.2% is far below the regulatory minimum of 8%, making capital adequacy the top priority. The planned dividend cut to ¥10.5 next year from ¥17 this year reflects a policy to prioritize capital buildup. Worsening cost-to-income ratio (~72.7%) signals structural efficiency issues; progress on cost reforms such as IT and branch optimization will be key to ROE improvement. The divergence between comprehensive income ¥234.5B and Net Income ¥120.2B stems from valuation gains on interest-rate hedges, necessitating ongoing monitoring of hedge valuations for capital stability.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are compiled by the Company based on public financial statements and are for reference only. Investment decisions are your own responsibility; consult a professional as needed.