Iyogin Holdings (5830) Q2 2025 earnings summary

Executive summary

• Consolidated core business gross profit rose 4.7% year-over-year to ¥53.2 billion, driven by higher interest and dividend income from increased loan balances and improved margins, despite higher expenses from strategic investments and next-generation system costs.

• Ordinary revenues rose 21.9% year-over-year to ¥121,605 million for the six months ended September 30, 2024.

• Net income attributable to owners of parent increased 21.1% year-over-year to ¥29.95 billion, reflecting gains on securities and reduced credit costs.

• Loans and deposits both grew, with loans up 2.9% and deposits up 2.6% year-over-year, and assets in custody up 12.4%.

• Comprehensive income reached ¥34,398 million, up 22.0% year-over-year.

Financial highlights

• Interest and dividend income increased by ¥2.95 billion year-over-year, mainly from gains on loan management and unhedged foreign bonds.

• Nonpersonnel expenses rose by ¥5.68 billion due to strategic investments and next-generation core system costs.

• Credit costs decreased by ¥1.35 billion year-over-year, with a stable non-performing loan ratio at 1.57%.

• Gain on securities, including bonds and stocks, increased by ¥8.89 billion year-over-year.

• Basic earnings per share for the period was ¥99.49, up from ¥80.46 a year earlier.

Outlook and guidance

• Fiscal 2024 full-year forecast: consolidated core business gross profit of ¥106.5 billion (+7.8 billion YoY), net income attributable to owners of parent of ¥50.0 billion (+10.6 billion YoY).

• Full-year ordinary revenues are forecast at ¥218,000 million, up 13.1% year-over-year.

• Ordinary profit is projected at ¥72,000 million, up 22.9% year-over-year.

• Basic earnings per share forecast for the full year is ¥166.86.

• Annual dividend forecast is ¥40.00 per share.