Rakuten Bank (5838) investor relations material

Executive summary

• Achieved record highs in ordinary income, ordinary profit, and net income for Q1–Q3 FY2025, driven by strong interest income growth and customer acquisition leveraging the Rakuten Ecosystem.

• Ordinary income for the nine months ended December 31, 2025, rose 39.1% year-over-year to ¥183,263 million, with ordinary profit up 51.7% to ¥75,106 million and net income up 50.9% to ¥53,119 million.

• Deposit balance exceeded ¥13.2 trillion (+10% YoY), with 17.63 million accounts (+7% YoY), maintaining Japan's top digital bank status.

• Main accounts, which are highly profitable, grew faster than total accounts, with a main account ratio of 32.9%.

• New products and services, such as reverse mortgages, securities-backed loans, and smartphone ATM services, were launched to enhance customer convenience and profitability.

Financial highlights

• Interest income rose 56.8% YoY to ¥140,384 million, supported by BOJ policy rate hike and asset accumulation.

• Fees and commissions income increased by ¥2,038 million to ¥36,479 million, while non-interest income grew 1.1% YoY.

• G&A expense ratio improved to 32.4% (down 4.2pts YoY), despite a 21.4% YoY increase in expenses.

• ROE (annualized, Q1–Q3): 21.5% (+4.6pts YoY); capital adequacy ratio: 10.66% (down 0.4pts YoY).

• Profit per share for the nine months was ¥304.41, up from ¥201.63 year-over-year.

Outlook and guidance

• Full-year FY2025 forecasts revised upward: ordinary income ¥254,376 million (+37.8% YoY), ordinary profit ¥101,262 million (+41.5% YoY), net income ¥71,266 million (+40.3% YoY).

• Profit per share for the full year is forecast at ¥408.41.

• Assumes BOJ policy rate at 0.75%; further rate hikes could add ¥15.5 billion to net interest income per 25bp increase.

• No dividends are planned for the fiscal year; profits prioritized for growth and capital adequacy.

• Medium- to long-term vision targets 25 million accounts and ¥20 trillion in deposits by FY2026.