| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥5710.1B | ¥4431.9B | +28.8% |
| Operating Income | - | - | - |
| Profit Before Tax | ¥2258.1B | ¥903.5B | +149.9% |
| Net Income | ¥1567.8B | ¥819.7B | +91.3% |
| ROE | 6.3% | 3.4% | - |
For Q1 of the fiscal year ending March 2027, SBI Holdings reported substantial increases in revenue and profit, primarily driven by expanded valuation gains and gains on sales in the PE investment business, as well as growth in equity-method investment income. Revenue was ¥5,710.1B, up +28.8% YoY, while profit before tax accelerated to ¥2,258.1B, up +149.9%. Net income attributable to owners of the parent was ¥1,480.65B, up +75.0% YoY, and basic EPS was ¥229.07 (¥139.60 in the same period of the previous year). Consolidated quarterly profit, including non-controlling interests, was ¥1,567.8B (+91.3% YoY), and the increase in profit attributable to non-controlling interests was one factor behind the difference in growth rates (profit before tax +149.9% versus net income attributable to owners of the parent +75.0%).
【Revenue】Revenue was ¥5,710.1B, an increase of +28.8% YoY. By segment, the PE investment business expanded sharply to ¥1,360.5B (23.4% of total revenue, +223.1% YoY), driving overall growth. The core Financial Services Business achieved stable growth, with revenue of ¥4,047.73B (69.8% of total revenue, +5.2% YoY). The Asset Management Business at ¥124.78B (+45.5% YoY), Next-Generation Business at ¥132.01B (+98.7% YoY), and Crypto-Asset Business at ¥139.28B (+25.9% YoY) also all reported revenue increases.
【Profit and Loss】Profit before tax was ¥2,258.1B (+149.9% YoY), and the profit-before-tax margin improved to 39.6% from 20.4% in the same period of the previous year, an improvement of +19.2pt. Income taxes and other taxes were ¥690.3B, and the effective tax rate normalized to 30.6% (9.3% in the same period of the previous year). The higher tax burden was one factor that slowed net income growth (net income attributable to owners of the parent +75.0%) relative to profit-before-tax growth. The primary drivers of the improvement in profit and loss were expanded valuation gains and gains on sales in the PE investment business (profit before tax of ¥1,199.16B, +328.1% YoY) and an increase in equity-method investment income (¥170.43B, +212.0% from ¥54.62B in the same period of the previous year). Gain on bargain purchase of ¥3.22B recorded in the previous year did not recur in the current period, reducing the contribution from temporary factors. Revenue and profit both increased.
Four of the five segments reported increases in both revenue and profit. The Financial Services Business recorded revenue of ¥4,047.73B (+5.2% YoY) and profit before tax of ¥1,159.92B (+59.5% YoY), demonstrating profit growth exceeding revenue growth and reflecting the expansion of interest and fee income. The PE investment business recorded revenue of ¥1,360.5B (+223.1% YoY) and profit before tax of ¥1,199.16B (+328.1% YoY), making it the largest profit-contributing segment and accounting for approximately 49.8% of consolidated profit before tax before eliminations (total of ¥2,408.11B). The Asset Management Business recorded revenue of ¥124.78B (+45.5% YoY) and profit before tax of ¥27.37B (+103.5% YoY), while the Next-Generation Business recorded revenue of ¥132.01B (+98.7% YoY) and profit before tax of ¥36.10B (+262.5% YoY); both posted high rates of profit growth. Meanwhile, despite revenue growth of +25.9% to ¥139.28B, the Crypto-Asset Business saw its loss before tax widen from ▲¥5.31B in the previous year to ▲¥14.44B, becoming a factor weighing on the overall profit margin.
【Profitability】The net profit margin based on net income attributable to owners of the parent improved significantly to 25.9% (19.1% in the previous year, +6.8pt), while the profit-before-tax margin improved to 39.6% (20.4% in the previous year, +19.2pt). 【Cash Flow Quality】Operating cash flow (OCF) was ¥2,695.4B, or 1.82 times net income attributable to owners of the parent (¥1,480.65B), indicating strong cash support for reported profit. 【Investment Efficiency】ROE was 6.3% (based on consolidated quarterly profit / total equity; this is the quarterly actual figure and is not annualized). Total asset turnover was extremely low (revenue of ¥5,710.1B against total assets of ¥391,871.3B), reflecting a revenue structure that leverages the scale of liabilities and assets characteristic of a financial conglomerate. 【Financial Soundness】The equity ratio (equity attributable to owners of the parent / total assets) was 4.8% (4.7% in the previous year), while total liabilities / total equity was high at 14.84x, reflecting a structure involving deposits and securities-related assets and liabilities characteristic of the financial business. Cash and cash equivalents were ¥6,142.6B, down ▲4.0% from the end of the previous fiscal year.
Operating cash flow was ¥2,695.4B, down ▲74.5% from ¥1兆565.2B in the same period of the previous year. In the previous year, changes in securities business-related assets and liabilities contributed positively by ¥2,313.56B, and customer deposits also increased by ¥6,273.5B. In the current period, changes in securities business-related assets and liabilities made a negative contribution of ▲¥4,937.61B, while the increase in customer deposits was limited to ¥1,578.58B; the reversal in working capital items was a factor behind the decline in operating cash flow. Investing cash flow was ▲¥6,616.4B (▲¥1,590.04B in the previous year), primarily due to purchases of investment securities (▲¥8,905.29B). Financing cash flow was +¥1,390.6B (▲¥849.48B in the previous year), supported by the net balance between bond issuance of ¥8,610.47B and bond redemptions of ▲¥8,275.62B, as well as a net increase in short-term borrowings of ¥1,421.52B. As a result, free cash flow (operating cash flow + investing cash flow) was ▲¥3,921.0B, with aggressive asset accumulation centered on purchases of investment securities being the primary cause of cash outflows. Dividend payments of ¥481.82B were funded within the range of operating cash flow, and cash and cash equivalents at period-end were ¥6,142.6B, down ▲4.0% from the end of the previous fiscal year.
The expansion in profit during the current period was supported by factors susceptible to market conditions and exit timing, namely increased valuation gains and gains on sales in the PE investment business and growth in equity-method investment income (¥170.43B, +212.0% from ¥54.62B in the same period of the previous year). Gain on bargain purchase of ¥3.22B recorded in the same period of the previous year did not recur in the current period, reducing the temporary uplift. Among non-operating items, interest income (¥1,595.29B) and insurance revenue (¥295.70B) comprised part of revenue, together with expense items such as financial expenses (¥795.26B) and provision for credit losses (¥101.23B), forming a profit-and-loss structure characteristic of the financial business. Other comprehensive income after tax was ▲¥170.53B (+¥75.68B in the previous year), primarily due to changes in the fair value of other investment securities (▲¥100.13B) and foreign currency translation adjustments for foreign operations (▲¥94.91B). Total comprehensive income of ¥1,397.28B was below consolidated quarterly profit of ¥1,567.81B. Meanwhile, operating cash flow was maintained at 1.82 times net income attributable to owners of the parent, indicating a limited divergence between accrual-based earnings and cash flow and good earnings quality in terms of cash conversion.
The Company revised its interim dividend forecast to ¥30 per share. This represents an increase of ¥10 from the interim dividend of ¥20 per share for the previous fiscal year, on a pre-stock-split basis. For the full-year dividend, the Company intends to target a level at least equal to the previous fiscal year’s actual dividend of ¥95 per share (on a post-stock-split basis). The year-end dividend and full-year dividend forecasts remain undecided at this time and will be determined based on future performance trends. The payout ratio is approximately 32.7%, calculated by dividing dividends from retained earnings for the current period attributable to owners of the parent (¥484.77B) by net income attributable to owners of the parent (¥1,480.65B), representing a reasonable level. Share buybacks were minimal at ¥0.02B in Q1, and shareholder returns are centered on dividends.
Dependence on profit from the PE investment business: The PE investment business accounted for ¥1,199.16B of the current period’s profit before tax of ¥2,258.1B (approximately 53% on a standalone basis and approximately 49.8% relative to the segment total of ¥2,408.11B), resulting in a structure in which performance is susceptible to the timing of valuation gains and gains on sales.
High leverage and market sensitivity: The equity ratio (equity attributable to owners of the parent / total assets) was 4.8%, and total liabilities / total equity was high at 14.84x. Bonds and borrowings increased +6.9% from the end of the previous fiscal year to ¥7,493.14B, making trends in funding costs amid changes in the interest-rate environment a key financial monitoring point.
Continued losses in the Crypto-Asset Business: Loss before tax widened from ▲¥5.31B in the previous year to ▲¥14.44B in the current period, and profitability has not improved despite revenue increasing to ¥139.28B (+25.9%).
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Net Profit Margin | 27.5% | 9.4% (7.2%–39.5%) | +18.0pt |
The net profit margin is significantly above the industry median and is positioned at a high level within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 28.8% | 10.7% (2.1%–15.7%) | +18.1pt |
The revenue growth rate also significantly exceeds the industry median, placing the Company among the high-growth group within the industry.
※Source: Compiled by the Company
The PE investment business became the largest contributor to profit before tax (¥1,199.16B, +328.1% YoY) and drove overall profit growth. In evaluating the quality of current-period profit, this should be viewed as a structural change involving increased dependence on valuation gains and the exit environment.
Equity-method investment income expanded to ¥170.43B (+212.0% YoY), while the balance of investments in equity-method affiliates also increased +52.0% from the end of the previous fiscal year, indicating that the impact of affiliate performance on consolidated profit has become structurally more significant.
The Company revised its interim dividend forecast upward to ¥30 per share and maintained its policy of targeting an annual dividend of at least ¥95, the previous fiscal year’s actual dividend. Together with operating cash flow remaining sufficient to cover dividend payments, this indicates a continued commitment to shareholder returns.
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. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting with a professional as necessary.
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