Yokohama Financial (7186) investor relations material

Executive summary

• Profit attributable to owners of parent rose to ¥32.0 billion, up ¥4.9 billion year-over-year, achieving 24.8% of the full-year forecast and marking the fourth consecutive year of first-quarter profit growth.

• Core net business profit increased by ¥10.9 billion year-over-year, reaching 27.7% of the annual target.

• Net interest income grew by ¥13.5 billion year-over-year, driven by a wider yield spread on deposits and loans.

• Announced a ¥20.0 billion treasury share buyback and a definitive agreement to acquire a 15% stake in SMTPFC.

• Comprehensive income surged 56.2% year-over-year to ¥75.5 billion.

Financial highlights

• Gross operating income for the quarter was ¥78.3 billion, with net interest income at ¥72.3 billion (up ¥13.5 billion YoY).

• Expenses increased by ¥1.3 billion YoY but remained controlled, with an OHR of 43.1% (down 3.7pt YoY).

• Credit costs rose by ¥2.6 billion YoY but were in line with plan, at 22.2% of the annual forecast.

• Gains on stocks and other securities increased by ¥3.1 billion to ¥4.0 billion.

• Net income per share was ¥28.81, up from ¥23.68 a year earlier.

Outlook and guidance

• Full-year forecast for profit attributable to owners of parent is ¥129.0 billion, up 21.1% year-over-year.

• Ordinary profit for the fiscal year ending March 31, 2027, is projected at ¥191.5 billion, up 23.5%.

• Dividend forecast for FY2027 is ¥47.00 per share, up from ¥38.00.

• Benefits from higher interest rates on housing loans and other products expected to materialize from 2Q onward.

• A 0.25% policy rate hike is estimated to add approximately ¥14.0 billion to gross operating income annually.