JAPAN POST BANK (7182) Q4 2025 earnings summary

Executive summary

• Net income for fiscal 2024 reached a record high of JPY 414.3 billion, surpassing forecasts for the second consecutive year, with a dividend per share of JPY 58.

• Fiscal 2025 targets net income of JPY 470 billion and a dividend per share of JPY 66, reflecting continued profit growth.

• The shareholding ratio of Japan Post Holdings is expected to fall below 50% after a recent share offering, expanding business opportunities.

• The bank is executing a medium-term plan focused on profitability, efficiency, capital soundness, and digital transformation.

• Interest income and fees both grew, while ordinary expenses fell, supporting profit growth.

Financial highlights

• Net income for fiscal 2024 was JPY 414.3 billion (103.5% of forecast), with net ordinary income at JPY 584.5 billion.

• Net interest income rose to JPY 956.7 billion, up JPY 240.9 billion year-over-year, driven by higher yen interest rates.

• Fees and commissions increased to JPY 156.3 billion; G&A expenses decreased to JPY 915.6 billion.

• Cash and cash equivalents at year-end increased by JPY 6.9 trillion to JPY 64.6 trillion.

• Net unrealized losses on available-for-sale financial instruments were JPY (1,087.9) billion, reflecting rising yen interest rates.

Outlook and guidance

• Fiscal 2025 net income forecast is JPY 470 billion, with a dividend per share of JPY 66 (+8 YoY).

• FY2026 net ordinary income is forecast at JPY 680 billion, with net income projected at JPY 470 billion.

• ROE target for FY2025 is 4.7% or more, with a medium-term goal of 5%+.

• No additional BOJ policy rate hikes are expected in FY2025; interest rates projected to follow early April 2025 forward rates.

• Plans to continue increasing dividends in line with profit growth.