SBI Shinsei Bank (8303) investor relations material

Executive summary

• FY2026 first-half revenue reached ¥199.8bn, up 21% YoY; ordinary business profit was ¥106.4bn, up 34%, and consolidated income before taxes rose 51% to ¥92.9bn.

• Net income attributable to owners of the parent was ¥69.1bn versus ¥69.4bn a year earlier; first-half revenue, ordinary business profit and income before taxes reached interim highs since FY2000.

Financial highlights

• Net interest income increased 59% to ¥102.2bn; noninterest income declined 4% to ¥97.5bn, reflecting lower trading income and the absence of a prior-year large capital gain.

• Expenses rose 8% to ¥93.3bn, while the expense ratio improved to 46.7% from 52.2%.

• Net credit costs were ¥17.1bn, essentially unchanged YoY; the net credit cost ratio fell to 0.13% from 0.15%.

• Income taxes were ¥23.6bn versus a ¥7.6bn prior-year tax benefit as tax loss carryforwards declined amid continued profitability.

• Nonconsolidated ordinary profit rose 78.4% to ¥61.0bn and net income rose 53.4% to ¥46.2bn; net interest income increased to ¥88.1bn from ¥50.4bn.

Outlook and guidance

• FY2027 income before income taxes is forecast at ¥132.0bn, up 8.1% YoY, unchanged from the latest announcement.

• FY2026 policy-rate hikes are estimated to add ¥9.0bn to full-year earnings; a further 0.25% December hike could add ¥1.5bn over three months, outside the plan.

• Interim dividend was ¥10 per share; the annual dividend target is at least ¥42 per share.

• FY2027 medium-term targets include profit growth of ~50% versus FY2024, RORA of ~1.15%, deposits of ¥18tn and operating assets of ¥20tn; AI-enabled efficiencies target at least ¥25bn in savings over three years.