JAPAN POST BANK (7182) investor relations material

Executive summary

• Achieved record net income for the third consecutive year, with FY2025 net income at JPY 525.5bn, exceeding forecasts by 5%.

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

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

• New Medium-term Management Plan (FY2026–FY2028) targets net income over JPY 1tn and ROE of approximately 10% by FY2028, focusing on digital transformation, asset management, and regional private equity investment.

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

Financial highlights

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

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

• General and administrative expenses increased to JPY 946.4bn, mainly due to growth investments.

• Dividend payout ratio remains around 50%, with share repurchases totaling JPY 30bn in FY2025.

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

Outlook and guidance

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

• FY2027 forecast: Net ordinary income JPY 955.0bn (up 25.7%), net income attributable to owners of parent JPY 660.0bn (up 25.5%), net income per share JPY 185.29.

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

• Progressive dividends and ongoing share repurchases planned, with a focus on balancing shareholder returns and growth investments.