JAPAN POST BANK (7182) investor relations material

Executive summary

• Achieved record net income for the third consecutive year, with FY2025 net income at JPY 525.5 billion, exceeding forecasts and marking the third consecutive year of record profits.

• Announced a new medium-term management plan targeting net income over JPY 1 trillion and ROE of around 10% by FY2028, with a strategic focus on digitalization, asset management, and regional private equity investment.

• FY2026 net income is forecast to rise to JPY 660.0 billion, with a dividend per share of JPY 93, up JPY 19 year-over-year.

• Ordinary income rose by JPY 330.1 billion year-over-year to JPY 2,852.2 billion, driven by higher interest income and fees.

• Total assets decreased by JPY 7,029.9 billion to JPY 226,571.5 billion, while securities and loans increased.

Financial highlights

• FY2025 net interest income rose to JPY 1,536.3 billion, up JPY 201.0 billion year-over-year, driven by higher yen interest rates.

• Net fees and commissions increased to JPY 167.5 billion, up JPY 11.2 billion year-over-year.

• Dividend per share increased to JPY 74 for FY2026 and is planned to rise to JPY 93 for FY2027.

• Share repurchases totaled JPY 30 billion in FY2025, the first without a global offering.

• Net income per share reached JPY 147.10, up from JPY 114.60 year-over-year.

Outlook and guidance

• FY2026 guidance: net income JPY 660.0 billion, net interest income JPY 1,782.0 billion, and G&A expenses JPY 997.0 billion.

• Medium-term targets for FY2028: net income over JPY 1 trillion, ROE approx. 10%, OHR approx. 40%, CET1 ratio 11–13%.

• Shareholder returns to be maintained with a dividend payout ratio of around 50% and ongoing share repurchases.

• FY2027 forecast: Net ordinary income JPY 955.0 billion, net income attributable to owners of parent JPY 660.0 billion, net income per share JPY 185.29.