| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥41.22B | ¥24.16B | +70.7% |
| Operating Income | - | - | - |
| Ordinary Income | ¥9.54B | ¥7.38B | +29.3% |
| Net Income | ¥6.18B | ¥4.81B | +28.4% |
| ROE | 1.6% | 1.3% | - |
The Company posted increases in both revenue and profit, driven by significant growth in ordinary revenue (revenue); however, the profit growth rate fell below the revenue growth rate, resulting in margin contraction. Ordinary revenue was ¥41.22B (¥24.16B in the previous year, YoY +70.7%), ordinary income was ¥9.54B (up +29.3%), and net income attributable to owners of the parent was ¥6.18B (up +28.4%). The primary driver of revenue growth was the expansion of interest income in the Banking Business segment. While interest on loans and securities increased against the backdrop of a rising interest-rate environment, the ordinary income margin declined to 23.1% (30.5% in the previous year), and the net income margin declined to 15.0% (19.9% in the previous year), indicating that cost growth kept pace with the expansion in revenue.
【Revenue】The increase in ordinary revenue to ¥41.22B (YoY +70.7%) was led by ordinary revenue of ¥38,634 million (YoY +76.8%) from the Banking Business segment, which accounted for 93.7% of the total. Interest income (interest on loans: ¥12,925 million, compared with ¥11,026 million in the previous year), fee and commission income (¥3,435 million, up +11.1%), and other operating income (¥1,663 million, up +64.5%) all increased, with changes in the interest-rate environment and the expansion of diversified revenue sources driving the top line. The Leasing Business (¥1.95B, YoY +9.8%) and Other Businesses (¥0.64B, YoY +21.5%) remained complementary contributors.
【Profit and Loss】Ordinary income of ¥9.54B (YoY +29.3%) and net income of ¥6.18B (YoY +28.4%) both increased, but lagged the revenue growth rate (+70.7%), resulting in margin contraction. Extraordinary losses were limited to ¥0.05B (including losses on disposal of fixed assets and other items), and the impact of one-time factors was limited. Against pretax income of ¥9.49B, income taxes and other taxes of ¥3.31B were recorded, resulting in an effective tax rate of 34.9%; there was no significant divergence in the transition from pretax to after-tax income. The background to the slower profit growth relative to revenue growth included increases in costs such as interest expenses (InterestExpenseBNK: ¥5,197 million, compared with ¥3,935 million in the previous year, YoY +32.1%). In conclusion, the results represent increases in both revenue and profit, accompanied by margin contraction.
Profit from the Banking Business segment was ¥8.98B (¥7.02B in the previous year, YoY +27.9%), accounting for 92.3% of total segment profit of ¥9.73B and serving as the core driver of profit growth. Meanwhile, profit from the Leasing Business segment declined to ¥0.084B (¥0.151B in the previous year, YoY -44.4%); although ordinary revenue increased 9.8%, profitability was pressured. Other Businesses (including the credit card and credit guarantee businesses) generated ¥0.669B (¥0.464B in the previous year, YoY +44.2%), representing substantial profit growth and relatively strong growth among the non-banking businesses. After deducting adjustments (△¥0.195B, primarily the elimination of intersegment transactions) from total segment profit, the resulting ordinary income was ¥9.54B.
【Profitability】The ordinary income margin was 23.1%, down 740bp from 30.5% in the previous year, while the net income margin was 15.0%, down 490bp from 19.9% in the previous year, indicating that cost increases during a period of revenue growth pressured margins.【Cash Flow Quality】Comprehensive income was ¥8.02B, exceeding net income of ¥6.18B by ¥1.85B; however, it declined YoY by -26.8% from ¥10.96B in the same period of the previous year, primarily due to the slowdown in the increase in valuation differences on securities from ¥2.49B in the previous year (¥6.47B in the previous year).【Investment Efficiency】ROE was 1.6% (quarterly result), in line with the previous year, indicating no significant change in quarterly capital efficiency.【Financial Soundness】The equity ratio was 6.6%, unchanged from the same period of the previous year. The loan-to-deposit ratio was calculated at 77.3% based on loans of ¥3.7T and deposits of ¥4.8T. The ratio of net assets to total assets also remained at 6.6%, resulting in a total assets-to-net assets ratio (financial leverage) of 15.1x.
As no cash flow statement has been disclosed, funding trends are assessed based on changes in balance sheet balances. Cash and deposits increased substantially to ¥1.0545T (¥0.9191T in the previous year, YoY +14.7%), while securities declined to ¥0.9292T (¥1.0552T in the previous year, YoY -11.9%), suggesting that funds shifted from securities to cash and deposits. Borrowings decreased to ¥0.4093T (¥0.4698T in the previous year, YoY -12.9%), indicating a slight decline in reliance on market-based funding. Deposits increased marginally to ¥4.7907T (YoY +1.0%), while loans increased marginally to ¥3.7024T (YoY +0.4%), and the loan-to-deposit ratio remained stable at 77.3%.
The increase in ordinary income was supported by growth in interest income, fee and commission income, and other operating income. Extraordinary items were limited, consisting of extraordinary gains of ¥0.002B and extraordinary losses of ¥0.047B, and the contribution of one-time factors to the current-period profit level was limited. Meanwhile, comprehensive income of ¥8.02B exceeded net income of ¥6.18B, but the increase in valuation differences on securities—the primary factor behind the ¥1.85B difference—was ¥2.49B in the current period, down from ¥6.47B in the previous year. Consequently, comprehensive income declined YoY by -26.8%. While net income grew YoY by +28.4%, growth on a comprehensive-income basis slowed, highlighting the need to monitor the impact of market factors, such as fluctuations in unrealized gains on securities, on earnings quality.
The Q1 progress rates against the full-year Company forecasts were 28.9% for ordinary income, at ¥9.54B/¥33.00B; 29.4% for net income, at ¥6.18B/¥21.00B; and 29.4% for EPS, at ¥54.64/¥185.69. All exceeded the 25% benchmark based on simple quarterly allocation. The progress rate for revenue (ordinary revenue) was even higher, at 35.4%, or ¥41.22B/¥116.50B. As of the current quarter, no revisions had been made to the earnings or dividend forecasts.
The annual dividend forecast for the fiscal year ending March 2027 is ¥70 per share, representing a payout ratio of approximately 37.7% against forecast EPS of ¥185.69. The Company conducted a 1-for-4 stock split of its common shares effective April 1, 2026; the actual dividend of ¥108 for the previous fiscal year (the fiscal year ending March 2026) was stated on a pre-split basis. On a post-split basis, the previous-year dividend was equivalent to ¥27, meaning that the current-year forecast of ¥70 represents a substantial dividend increase on a split-adjusted basis. The Q1 net income progress rate was 29.4%, indicating steady progress.
Revenue concentration risk: The Banking Business segment accounted for 93.7% of ordinary revenue (¥38,634 million/¥41,221 million), creating a structure in which sensitivity to interest income and the interest-rate environment influences overall performance.
Equity ratio level: The equity ratio was 6.6%, unchanged from the same period of the previous year, while the total assets-to-net assets ratio (financial leverage) was high at 15.1x.
Valuation fluctuations in securities: The increase in valuation differences on securities declined to ¥2.49B in the current period from ¥6.47B in the previous year, and comprehensive income declined YoY by -26.8%. The securities balance also contracted to ¥0.9292T (YoY -11.9%), and fluctuations in valuation gains and losses during periods of interest-rate volatility could affect earnings quality.
Profitability and Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Net Income Margin | 15.0% | – | – |
Because comparable data is limited, the assessment of the Company’s relative positioning is provided for reference only.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 70.7% | – | – |
The Company’s revenue growth rate reflects strong growth driven by changes in the interest-rate environment. Accumulation of additional data would be useful in assessing its positioning within the industry.
※Source: Company compilation
Increases in both revenue and profit continued against the backdrop of significant growth in ordinary revenue (YoY +70.7%), while progress against the full-year forecast also exceeded the standard pace, at 28.9% for ordinary income and 29.4% for net income. Expansion in interest income in the Banking Business segment was the central driver of performance.
Both the ordinary income margin (23.1%, compared with 30.5% in the previous year) and the net income margin (15.0%, compared with 19.9% in the previous year) declined from the previous year. Margin contraction caused by cost increases during a period of revenue growth remains a structural point of observation.
Following the stock split in April 2026, the dividend forecast for the fiscal year ending March 2027 represents a substantial dividend increase on a split-adjusted basis. Meanwhile, the equity ratio remained at 6.6%, unchanged from the previous year, making trends in the capital base a key monitoring point.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting with a professional as necessary.
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