| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2359.3B | ¥1506.4B | +56.6% |
| Operating Income / Operating Profit | - | - | - |
| Ordinary Income | ¥375.3B | ¥280.7B | +33.7% |
| Net Income / Net Profit | ¥251.1B | ¥201.0B | +24.9% |
| ROE | 6.4% | 5.2% | - |
For the fiscal year ended March 2026, Revenue (Ordinary Revenues) was ¥2,359.3B (YoY +¥852.9B, +56.6%), Ordinary Income was ¥375.3B (YoY +¥94.6B, +33.7%), and Net Income was ¥251.1B (YoY +¥50.1B, +24.9%). Ordinary revenues to external customers in the Banking Business segment expanded sharply to ¥2,049.1B (+69.2%), driving consolidated growth. The primary driver of revenue growth was a large increase in interest income (Interest Income ¥1,184.9B, prior year ¥865.3B), but funding costs also surged to ¥253.8B (prior year ¥87.1B), compressing spreads. Net fee income remained firm at ¥180.1B, while Other Ordinary Income swung to a large negative ¥▲513.7B (Unrealized gains/losses on securities ▲¥539.5B), and deterioration in market-related P&L restrained profit growth. Operating expenses rose to ¥726.6B (+¥43.2B) and cost effectiveness worsened. Operating Cash Flow (OCF) was ¥▲3,751.3B; although characteristic balance-sheet operations in banking drove cash flow volatility, the OCF/Net Income ratio was an extremely low ▲14.7x relative to Net Income of ¥251.1B. ROE improved to 6.4% from 5.0% a year earlier but remained below a level that would clearly exceed the cost of capital.
Revenue (Ordinary Revenues) increased significantly to ¥2,359.3B (YoY +56.6%). The Banking Business contributed ¥2,049.1B (+69.2%), accounting for 86.8% of the total, with interest income rising sharply to ¥1,184.9B, including loan interest ¥885.9B (prior year ¥668.5B) and interest/dividend on securities ¥192.3B (prior year ¥139.3B). Fee income was ¥315.3B (prior year ¥303.1B, +4.0%). The Leasing Business recorded ¥244.2B (+5.0%), and Other was ¥66.5B (+6.1%), both remaining stable. Loan balance increased to ¥8.04T (+2.3%) in the rising rate environment, and the effect of higher average lending rates was notable. Deposit balance edged up to ¥11.12T (+0.26%), and the loan-to-deposit ratio remained at a reasonable 72.2%.
Profitability: Gross operating profit (net interest income + net fee income + other ordinary income) is estimated at approximately ¥597.5B, but Other Ordinary Income swung to a large negative ¥▲513.7B, weighing on profitability. Operating expenses rose to ¥726.6B (+6.3%), with growth in personnel and SG&A outpacing gross profit. Ordinary Income finished at ¥375.3B (+33.7%), missing the initial forecast of ¥444.0B (progress rate 84.5%). Extraordinary items were minor (Extraordinary gains ¥0.3B, Extraordinary losses ¥4.5B), and Pre-tax Income was ¥371.1B; after deducting income taxes of ¥114.7B, Net Income was ¥251.1B (+24.9%). The effective tax rate was 30.9%. Non-controlling interests were limited at ¥0.4B. By segment, Banking accounted for 95.9% of Ordinary Income; Leasing contributed ¥8.6B (≈+1.0%), and Other contributed ¥16.4B. In summary, revenue and profit both increased, but profit growth lagged revenue growth due to higher funding costs and deterioration in market-related income.
The Banking Business reported Revenue of ¥2,049.1B (prior year ¥1,211.2B, +69.2%) and segment profit of ¥359.4B (prior year ¥266.3B, +35.0%), accounting for the bulk of consolidated profit. Loan interest income of ¥885.9B was the primary revenue source, up ¥217.4B YoY. The Leasing Business posted Revenue of ¥244.2B (prior year ¥232.5B, +5.0%) and segment profit of ¥8.6B (prior year ¥8.6B, flat), contributing modestly. Other segments (e.g., credit guarantee) generated Revenue of ¥66.5B (+6.1%) and segment profit of ¥16.4B (prior year ¥15.5B). Improvements in profitability within the Banking Business drove consolidated results, but expense increases within that segment (+6.3% operating expenses) and deterioration in Other Ordinary Income constrained profit growth.
Profitability: Net profit margin declined to 10.6% (prior year 13.3%). ROE improved to 6.4% (prior year 5.0%) but did not clearly exceed the cost of capital. ROA (on Ordinary Income basis) improved to 0.28% from 0.21% a year earlier. NIM (Net Interest Margin) is estimated at 1.16%, relatively low; net interest income rose to ¥931.1B (Interest Income ¥1,184.9B − Interest Expense ¥253.8B), but a sharp increase in funding costs (YoY +191.5%) compressed margins. Net fee income was stable at ¥180.1B (Fee Income ¥315.3B − Fee Expense ¥135.2B). CIR (Operating Expenses / Gross Profit) is estimated at 122%, remaining elevated and highlighting deteriorating cost effectiveness.
Cash quality: Operating Cash Flow was ¥▲3,751.3B, and OCF/Net Income was ▲14.7x. Balance-sheet operations typical of banking (loan changes, securities operations, interbank transactions) influenced cash flows, and cash conversion rate was low (OCF/EBITDA ▲7.8x). Free Cash Flow was ¥▲3,551.5B, meaning dividend funding is not covered by cash flow. Investment efficiency: Capital expenditures were ¥70.7B versus depreciation of ¥104.0B (capex/depreciation 0.68x), indicating restrained investment. Total asset turnover was 0.018x, reflecting low returns relative to banking asset scale.
Financial soundness: Equity Ratio (reported) was 2.9%, suggesting a level well below regulatory standards. D/E ratio was 32.9x, reflecting structural leverage in banking. Loan-to-deposit ratio was 72.2% (Loans ¥8.04T / Deposits ¥11.12T), indicating liquidity headroom. Borrowings declined significantly to ¥6.58T (YoY ▲26.9%), reducing wholesale funding dependence and easing funding risk. BPS improved to ¥1,035.74 (prior year ¥1,010.42).
Operating Cash Flow was ¥▲3,751.3B, calculated from operating cash flow subtotal of ¥▲3,668.9B less income taxes paid of ¥82.3B. Balance-sheet operations in banking had large impacts on cash (Loan changes +¥1,802.8B, Deposit changes +¥2,858.6B, Borrowings decrease ▲¥2,417.1B, Other liabilities increase +¥6,130.3B). Investing Cash Flow was a net inflow of ¥199.7B, including Capital Expenditure ▲¥70.7B and intangible asset additions ▲¥35.7B, with net gains from sales/redemptions of securities contributing positively. Financing Cash Flow was ¥▲146.7B, primarily due to Dividends paid ▲¥120.9B and Share buybacks ▲¥24.3B. Free Cash Flow was ¥▲3,551.5B, not covering dividend payouts; in banking, fund allocation is often assessed relative to equity and regulatory capital capacity rather than solely by the cash flow statement. Cash and cash equivalents declined to ¥2,263.8B (prior year ¥2,633.6B, ▲14.0%).
Core recurring earnings consist of net interest income ¥931.1B and net fee income ¥180.1B, totaling ¥1,111.2B as the operating revenue base. One-off items were minor (Extraordinary gains ¥0.3B, Extraordinary losses ¥4.5B, including impairment losses ¥0.7B), with limited impact on Net Income. Other Ordinary Income swung to a large negative ¥▲513.7B, primarily due to Unrealized gains/losses on securities ▲¥539.5B, as valuation losses on held bonds emerged in the rising-rate environment. Volatility in non-operating (Other Ordinary) income is significant, leaving structural concerns over earnings quality. Comprehensive income was ¥217.3B, below Net Income ¥251.1B, with Other Comprehensive Income at ▲¥390.9B (including Unrealized gains/losses on securities ▲¥54.0B, Remeasurements of defined benefit plans +¥14.8B) pressuring equity. With OCF well below Net Income (OCF/NI = ▲14.7x), accrual quality is low. The divergence between Ordinary Income and Net Income is within a reasonable taxation range, but while EBITDA margin appears healthy at 20.3% (EBITDA / Revenue = ¥479.5B / ¥2,359.3B), for banking the sustainability of interest income, CIR, and credit costs are the essential evaluation axes.
Full Year guidance was Revenue ¥2,252.0B, Ordinary Income ¥444.0B, Net Income ¥293.0B. Actual Revenue exceeded guidance at ¥2,359.3B (progress 104.8%), while Ordinary Income ¥375.3B (84.5%) and Net Income ¥251.1B (85.7%) fell short. Despite higher revenue, profit shortfalls resulted from higher-than-expected funding costs (Deposit interest ¥190.7B, prior year ¥65.1B) and deterioration in market-related income (Other Ordinary Income ¥▲513.7B). YoY, Ordinary Income rose +33.7% and Net Income +24.9%, but compared with initial plans profit bottlenecks emerged. For next fiscal year targets to be met, defenses for NIM (appropriate pass-through of lending rate increases and deposit repricing management), CIR improvement (containing operating expenses and expanding non-interest income), and reducing interest sensitivity of the securities portfolio are prerequisites.
Annual dividend was ¥28 per share (Q1 ¥6.5, Q2 ¥6.5, Q3 ¥6.5, year-end forecast ¥8.5). Against EPS of ¥68.05, the payout ratio was 41.1%. Total shareholder returns were Dividends ¥120.9B + Share buybacks ¥24.3B = ¥145.2B, and the Total Return Ratio was 57.9%. Prior year dividend was annual ¥6.5, so this year marked a substantial increase of ¥21.5. EPS increased from ¥53.92 in the prior year to ¥68.05 (+26.2%), reflecting strengthened shareholder returns in line with profit growth. Shares outstanding were 378,060 thousand (Treasury stock 3,943 thousand), and the weighted average shares outstanding were 376,213 thousand. With FCF at ¥▲3,551.5B, dividends are not covered on an FCF basis; for banking, funding allocation is evaluated mainly by equity and regulatory capital capacity. Room for further dividend increases depends on profit growth through NIM defense and CIR improvement, and stabilization of OCI via reduced securities valuation losses.
Margin compression risk: With NIM at 1.16% and funding costs surging to ¥253.8B (prior year ¥87.1B, +191.5%), deposit interest rose to ¥190.7B (prior year ¥65.1B) reflecting rate increases. If passthrough to lending rates lags, margins will be further pressured. Loan interest income increased by 32.5% (¥885.9B), but its growth rate trails the rise in funding costs, making spread defense the top priority.
Market-related income volatility: Other Ordinary Income was ¥▲513.7B and Unrealized gains/losses on securities were ▲¥539.5B, a large negative impact. Valuation losses on held bonds emerged in the rising rate environment, and Comprehensive Income of ¥217.3B fell below Net Income ¥251.1B. Of OCI ▲¥390.9B, unrealized securities losses of ▲¥54.0B pressured equity. If portfolio duration is not managed and interest-rate hedging is inadequate, valuation losses and capital erosion could continue.
Cost increases and CIR deterioration risk: Operating expenses reached ¥726.6B (+6.3%), with estimated CIR at 122% remaining elevated. Expense growth outpaced gross profit growth, reducing operating leverage. Unless personnel and SG&A are constrained and non-interest income expanded to improve cost effectiveness, profitability could decline persistently.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Net Profit Margin | 10.6% | 11.9% (7.2%–35.4%) | -1.2pt |
Net profit margin is 1.2pt below the industry median of 11.9%, placing the company slightly below the middle of the peer group. Deterioration in market-related income is compressing margins.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 56.6% | 10.1% (7.3%–12.1%) | +46.6pt |
Revenue growth outpaced the industry median of 10.1% by 46.6pt, ranking among the top in the sector, driven by the sharp increase in loan interest income.
※ Source: Company aggregation
Revenue momentum in the rising rate environment is strong, but rapid increases in funding costs and low NIM are key bottlenecks. While loan interest rose +32.5%, funding costs rose +191.5%, compressing spreads. Defending NIM at 1.16% and progress on deposit repricing are essential to sustain profits.
With estimated CIR at 122%, cost effectiveness has deteriorated, as operating expense growth (+6.3%) outpaced gross profit. Expanding net fee income (currently ¥180.1B) and optimizing personnel and SG&A are essential to improve margins.
Market-related losses (Other Ordinary Income ▲¥513.7B, Unrealized gains/losses on securities ▲¥539.5B) were large negatives, and OCI ▲¥390.9B pressured equity. Strengthening portfolio duration management and interest rate hedging is essential to reduce valuation losses and stabilize capital. With OCF/NI at ▲14.7x, cash conversion is extremely weak, so improving cash flow quality is a prerequisite for sustainable shareholder returns.
This report was generated by AI analyzing XBRL earnings announcement data and is an automated earnings analysis document. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information aggregated by the Company based on public financial statements. Investment decisions are your responsibility; please consult professionals as necessary before making any investment decisions.