Yokohama Financial (7186) investor relations material

Integrated balance sheet management

• As of June 2026, total assets were ¥25.0tn, consolidated loans ¥17.6tn and deposits ¥20.4tn; the loan-to-deposit ratio was 86.3%.

• Prioritize loan growth in high-RORA assets while improving RORA/ROA, expanding deposits with cost discipline and maintaining interest margins through profitability-focused pricing.

• Manage the common equity Tier 1 ratio within 10.5%–11.5%; target a ~40% payout ratio and use treasury-share purchases flexibly.

Funding and lending

• Deposits were 73.9% liquid in FY25; deposit pass-through was 44% through May 2026, with a 78% loan pass-through rate and ~100% for variable-rate loans.

• Accelerate deposit acquisition, deepen household and corporate primary-account relationships, and shift to an all-employee sales model from H2 FY26; ¥12.0bn of corporate bonds issued in July 2026.

• Grow loans by targeting high-RORA assets and steadily reflecting policy-rate increases in loan yields; focus includes SMEs, HNW individuals, structured finance and housing loans.

Liquidity and portfolio risk

• NSFR was 126.0% and LCR 121.6% in FY26 Q1, both above the 100% regulatory requirement; LCR is expected to exceed 130% after a scheduled methodology change.

• Among six Basel interest-rate shock scenarios, falling rates pose the greatest risk; swaps can hedge future declines, while resilience to rising rates supports additional lending and investment.

• Suspend new held-to-maturity yen-bond investments; balances are expected to decline as bonds mature, with funds available for loans and flexible available-for-sale investment.

• Reduce policy shareholdings’ market value to below 10% of consolidated net assets by March 2030; do not transfer these holdings to net investment stocks.