| Indicator | This Period | Prior Year | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥90854.4B | ¥90303.7B | +0.6% |
| Operating Income / Operating Profit | - | - | - |
| Ordinary Income | ¥15731.6B | ¥11681.4B | +34.6% |
| Net Income / Net Profit | ¥12541.6B | ¥8886.7B | +41.1% |
| ROE | 11.0% | 8.4% | - |
For the fiscal year ended March 2026, ordinary revenues reached ¥9兆0854B (YoY +¥551B +0.6%), ordinary income was ¥1兆5732B (YoY +¥4050B +34.6%), and net income attributable to owners of the parent was ¥1兆2486B (YoY +¥3631B +41.1%), delivering both revenue and profit growth. While top-line was broadly flat, improvements in net interest income, expansion in market-related revenue, and cost efficiency drove significant profit growth. Net profit margin improved to 13.8% (up +4.0pt from 9.8% a year earlier), and ROE rose to 11.0% (up +2.5pt from 8.5%). By segment, CIBC (Domestic Corporate, Financial Institutions & Public Sector) made the largest contribution with business profit of ¥4998B, while GCIBC (Global Corporate) and GMC (Global Markets & Custody) also drove earnings. Loans expanded to ¥99.8兆 (+¥6.0兆 +6.3%), securities to ¥42.6兆 (+¥8.3兆 +24.2%), and deposits to ¥165.9兆 (+¥7.2兆 +4.5%), strengthening the stable funding base. Conversely, Operating Cash Flow (OCF) was ▲¥4兆8385B (prior year ▲¥3兆8208B, ▲26.6%) as bank-account-specific asset expansion led to larger cash outflows. Dividends were maintained at ¥145 per share annually (same level as prior year); payout ratio was 39.9% and share buybacks of ¥4043B were executed to enhance total shareholder returns.
[Revenue] Ordinary revenues were ¥9兆0854B (+0.6%), a modest increase. Net interest income rose due to improved lending-deposit yield spreads, though net interest margin (NIM) remained low at 1.38%. Fee income grew, with fee revenue of ¥1兆3119B (prior year ¥1兆1154B, +17.6%) and trust fees of ¥670B (prior year ¥623B, +7.5%), indicating diversification of non-interest income. Trading income declined to ¥8989B (prior year ¥1兆0475B, ▲14.2%) reflecting market environment volatility. By segment, CIBC (gross business profit ¥7393B), GCIBC (¥8570B), and GMC (¥6649B) contributed in a balanced manner, while Retail & Business Company (RBC) recorded the largest gross business profit at ¥9846B but higher cost ratios left business profit at ¥2375B.
[Profitability] Operating expenses were ¥2兆1035B (prior year ¥1兆8407B, +14.3%) but ordinary income improved substantially to ¥1兆5732B (+34.6%). The ability to increase profit despite flat revenues was supported by margin management, fee income growth, improvement in market-related income, and cost efficiency. Equity-method investment income contributed ¥523B (prior year ¥468B). Extraordinary items totaled net income of ¥491B (extraordinary gains ¥938B, extraordinary losses ¥447B) versus prior year net ¥219B, indicating limited impact from one-offs. Profit before tax was ¥1兆6223B (prior year ¥1兆1901B, +36.3%); after deducting corporate taxes of ¥3681B (effective tax rate 22.7%), net income attributable to owners of the parent was ¥1兆2486B (+41.1%). The gap between ordinary income and net income is explained by taxes and a small non-controlling interest (¥55B), indicating that the earnings improvement is driven by recurring revenue performance. In conclusion, the company achieved both revenue and profit growth.
RBC (Retail & Business Company) reported gross business profit ¥9846B and business profit ¥2375B, with a profit margin of 24.1%; its cost structure is relatively heavy given its focus on individual and mid-sized customers. CIBC (Domestic Corporate, Financial Institutions & Public Sector) recorded gross business profit ¥7393B and business profit ¥4998B, with a margin of 67.6%, the most efficient segment, reflecting high profitability of large corporate transactions. GCIBC (Global Corporate) achieved gross business profit ¥8570B and business profit ¥3677B, margin 42.9%, showing revenue growth for overseas corporates and improved cost management. GMC (Global Markets & Custody) posted gross business profit ¥6649B and business profit ¥2600B, margin 39.1%, capturing improved market conditions. AMC (Asset Management) had gross business profit ¥736B and business profit ¥197B, margin 26.7%, contributing stably despite its smaller scale. Segment fixed assets: RBC ¥6489B, CIBC ¥1738B, GCIBC ¥2353B, GMC ¥1024B, with ¥8591B allocated to corporate & shared functions, indicating substantial investment in the retail network.
[Profitability] Net profit margin improved materially to 13.8% (up +4.0pt from 9.8% prior year), and ROE rose to 11.0% (up +2.5pt from 8.5%). Given the bank-typical low total asset turnover of 0.030x and high financial leverage of 26.5x, the improvement in net profit margin was the main driver of ROE enhancement. EBITDA margin was 19.9% (EBITDA ¥1兆8049B / ordinary revenues ¥9兆0854B), and depreciation and goodwill amortization (¥2318B + ¥95B) are minor burdens. Equity-method investment income ¥523B accounted for 3.3% of ordinary income, contributing stably. Goodwill stood at ¥1401B (1.2% of equity, 0.08x of EBITDA), very light with limited impairment risk.
[Cash Quality] Operating Cash Flow (OCF) was ▲¥4兆8385B, and OCF/Net Income was ▲3.86x, reflecting that bank-account asset expansion (loans +¥6.0兆, securities +¥8.3兆, trading assets +¥8.2兆) absorbed funds. Operating-cash-flow-before-working-capital-changes was ▲¥4兆5211B, indicating significant asset/liability movements. OCF/EBITDA was ▲2.68x, and free cash flow was ▲¥11兆5069B — cash conversion during the balance-sheet expansion phase is weak. Accrual ratio was 2.0% (increase in retained earnings ¥7846B ÷ total assets ¥302兆2400億円) at a healthy level.
[Investment Efficiency] Total asset turnover was 0.030x (¥9兆0854B ÷ ¥302兆2400億円), low as typical in banking; efficient use of assets depends on NIM and fee income expansion. Capital expenditures were ¥967B (41.7% of depreciation ¥2318B), focused on renewals; goodwill amortization ¥95B is 0.5% of EBITDA and negligible.
[Financial Soundness] Equity Ratio was 3.8% (equity ¥11兆4039億円 ÷ total assets ¥302兆2400億円) which is low on a balance-sheet basis, but banking regulation capital (BIS standards) is the essential measure. D/E ratio was 25.5x, high, but the stable funding base centered on deposits ¥165.9兆 provides support. Loan-to-Deposit Ratio (LDR) was conservative at 60.1% (¥99.8兆 ÷ ¥165.9兆). Cash and deposits were ¥6兆1568B (2.0% of total assets), providing adequate liquidity, and short-term borrowings (commercial paper ¥1兆9218億円, call money ¥3兆1915億円) are manageable for maturities. Retained earnings rose to ¥6兆8312億円 (prior year ¥6兆0466億円, +13.0%), and treasury stock increased to ¥3115B (prior year ¥95B), improving capital efficiency through active repurchases.
Operating Cash Flow (OCF) was a large outflow at ▲¥4兆8385B (prior year ▲¥3兆8208B, ▲26.6%), and operating-cash-flow-before-working-capital-changes was also negative at ▲¥4兆5211B. This was driven by substantial increases in loans +¥6.0兆, securities +¥8.3兆, trading assets +¥8.2兆, and repo assets +¥2.5兆 absorbing funds — a structural feature of bank-account asset expansion. On the funding side, deposits increased +¥7.2兆, repo liabilities ▲¥0.7兆, and trading liabilities +¥4.9兆, with large movements; in net terms working capital consumed funds. Foreign exchange adjustments of ▲¥9303億円 also pressured OCF. Investing cash flow was ▲¥6兆6684億円 (prior year +¥3兆7931億円), worsening significantly as securities-related investments absorbed cash in addition to capital expenditures of ¥967B. Financing cash flow was ▲¥5232億円, with dividends ¥3687億円 and share buybacks ¥4043億円 executed, partially covered by bond issuance and other funding. Free cash flow was ▲¥11兆5069億円, substantially negative; dividend and buyback funding was financed through earnings and balance-sheet reallocation (liability increases and capital adjustments). Cash and deposits fell from ¥7兆0723億円 at the beginning of the period to ¥5兆9678億円 at period end (▲¥1兆1046億円 decrease); after considering foreign exchange effects +¥9843億円, the net decline was substantial. Because bank operating cash flows are highly sensitive to balance-sheet expansion/contraction, dividend capacity should be assessed against regulatory capital and earnings growth.
The profit increase this period was driven mainly by recurring revenue improvements; the impact of extraordinary items was limited. Net extraordinary items of ¥491B (extraordinary gains ¥938B, extraordinary losses ¥447B) represent only 3.0% of profit before tax ¥1兆6223B. One-off items such as impairment losses ¥250B and gains/losses on disposal of fixed assets ¥65B do not obscure the improvement in recurring revenues. Non-operating income included equity-method investment income ¥523B and other recurring income ¥5255B (5.8% of ordinary revenues), at appropriate levels; margin improvement, fee income expansion, and market-related revenues supported core earnings. Accrual ratio at 2.0% indicates healthy cash realization of profits in the medium-to-long term, though in the short term OCF ▲¥4兆8385B vs. Net Income ¥1兆2486B (▲3.86x) reflects asset expansion in the bank account. Comprehensive income was ¥1兆6512B (compared with net income ¥1兆2542B, +31.7%), driven by FX translation adjustments +¥2371B, securities valuation gains +¥4479B, deferred hedge losses ▲¥3906B, and retirement benefit adjustments +¥1033B, indicating valuation gains/losses on the balance sheet augmenting profit. The difference between ordinary income and net income is explained by corporate taxes ¥3681B (effective tax rate 22.7%) and non-controlling interest ¥55B; including the ¥491B of extraordinary items, ordinary revenues remain the primary driver of profit. The quality of earnings is high with low dependence on one-offs.
The company's forecast for the full year is net income attributable to owners of the parent ¥1兆3000B, EPS ¥533.1, and DPS ¥75. The forecast implies a +4.1% increase versus the current period result of ¥1兆2486B, assuming continued profit growth. The projected DPS ¥75 would imply a reduction from the annual ¥145, but this is based on a year-end dividend figure of ¥72.5 and may not represent a real reduction on an annualized basis. To deliver profit growth while revenues remain flat, continued margin management, fee income expansion, and cost efficiency are key. Market conditions and interest-rate developments carry high uncertainty; normalization of credit costs and market volatility are downside risks, while NIM improvement in a rising-rate environment is an upside. Progress toward the full-year target stands at 96.0% on a net income basis and is progressing well, but stable earnings in Q4 are required to achieve the full-year forecast.
Dividends were maintained at ¥145 annually (interim ¥72.5, year-end ¥72.5), same as prior year; payout ratio was 39.9% (dividends totaled ¥3689B against net income ¥1兆2486B), a sustainable level. Total dividends amounted to ¥3689B, equivalent to 47.0% of the increase in retained earnings (+¥7846B). Additionally, share buybacks of ¥4043B were implemented, bringing total shareholder returns to ¥7732B (Total Return Ratio 62.0%), aimed at improving capital efficiency. Treasury stock increased to ¥3115B at period end (from ¥95B at the beginning), with active repurchases; the company holds 51.33 million treasury shares (2.1%) out of 2.49 billion shares outstanding. Dividend coverage is negative when compared to FCF ▲¥11兆5069億円 vs. dividends ¥3689B, but given the banking cash-flow structure dividend capacity should be evaluated against regulatory capital and earnings growth; the depth of cash and deposits ¥6兆1568B and retained earnings ¥6兆8312億円 suggests high dividend continuity. Goodwill amortization ¥95B is 0.5% of EBITDA ¥1兆8049B and is not a material constraint on future dividend capacity. The company's forecasted DPS ¥75 suggests substantive maintenance on an annualized basis; alignment between the total return policy (dividends + buybacks) and capital policy will remain important.
Interest Rate Risk: With NIM at 1.38% and low, flattening of the yield curve or rising deposit beta could compress spreads. Securities holdings have been increased substantially to ¥42.6兆 (YoY +24.2%), so in a rising-rate environment valuation losses could crystallize. Conversely, there is room for improvement in loan yields; ALM (asset-liability management) execution will be pivotal for profitability. Quantitatively, a 1% rise in interest rates could lead to securities valuation losses on the order of several trillion yen, a non-negligible level versus equity ¥11.4兆.
Market Volatility Risk: Trading assets expanded materially to ¥30.5兆 (YoY +37.0%), and trading liabilities to ¥19.1兆 (YoY +34.0%), enlarging market positions; GMC segment business profit ¥2600B is sensitive to market movements. Trading income already declined to ¥8989B (prior year ¥1兆0475B, ▲14.2%); in deteriorating markets earnings volatility could widen. FX translation adjustment +¥2371B, securities valuation gains +¥4479B, and deferred hedge losses ▲¥3906B contribute materially to comprehensive income volatility and can affect the stability of shareholders’ equity.
Capital Adequacy Risk: Equity Ratio (on consolidated BS) of 3.8% is substantially below regulatory thresholds (BIS benchmark 8%); while differences in calculation scope should be noted, confirmation of capital buffer adequacy is necessary. High leverage with D/E ratio 25.5x increases vulnerability to funding cost rises or liquidity stress. Although deposits ¥165.9兆 provide a robust funding base, rollover risk for short-term borrowings (commercial paper ¥1.9兆, call money ¥3.2兆) remains. Weak operating cash generation (OCF ▲¥4兆8385B) reduces cash-creation capacity, so balance-sheet expansion-driven liquidity consumption is a consideration for capital strategy.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Net Profit Margin | 13.8% | 11.9% (7.2%–35.4%) | +1.9pt |
Profitability exceeds the industry median, with relative strength driven by margin management and fee income expansion.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 0.6% | 10.1% (7.3%–12.1%) | -9.4pt |
Top-line growth lags the industry average significantly, constrained by a mature domestic market and interest-rate environment.
※ Source: Company aggregation
Quality of revenue structure improved: Despite flat revenue (+0.6%), the company achieved large profit increases (ordinary income +34.6%, net income +41.1%), and ROE rose to 11.0% (up +2.5pt from 8.5%). Net profit margin improved to 13.8% (up +4.0pt from 9.8%) driven by margin improvement and cost efficiency; fee income grew +17.6% indicating diversification of non-interest income. NIM remains low at 1.38%, but there is scope for further improvement in a normalization of interest rates. By segment, CIBC (margin 67.6%) is the primary profit driver, and GCIBC and GMC provide stable contributions, forming a diversified portfolio.
Enhanced capital efficiency and shareholder returns: With payout ratio 39.9% and share buybacks ¥4043B, total return ratio was 62.0%, demonstrating a drive toward improved capital efficiency. Treasury stock rose to ¥3115B, holding 2.1% of issued shares, enabling active capital policy. Retained earnings are robust at ¥6兆8312億円 (+13.0%), supporting dividend continuity. Goodwill amortization burden is minimal at 0.5% of EBITDA and is not a constraint on future dividends. However, Equity Ratio (BS basis) at 3.8% is low and reconciling with regulatory capital (BIS) and strengthening capital buffers remains an important issue.
Liquidity management and risk-asset allocation are key: OCF ▲¥4兆8385B and FCF ▲¥11兆5069億円 indicate weak cash conversion during balance-sheet expansion. While loans +¥6.0兆, securities +¥8.3兆, and trading assets +¥8.2兆 increased assets, deposits +¥7.2兆 expanded the funding base and LDR is conservative at 60.1% with ample liquidity buffers. Nonetheless, securities valuation loss risk in a rising-rate environment, market-account volatility, and normalization of credit costs could materially affect earnings; ALM and risk-asset allocation execution will be critical to sustain ROE. The company forecasts full-year net income ¥1.3兆 (+4.1%), but monitoring NIM, cost-to-income ratio (CIR), and credit cost trends is necessary.
This report is an AI-generated earnings analysis document based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are compiled by the firm from public financial statements and are provided for reference. Investment decisions are your own responsibility; consult professionals as needed before acting.