JAPAN POST BANK (7182) Q4 2026 earnings summary

Executive summary

• Achieved record net income for the third consecutive year, with FY2025 net income at JPY 525.5 billion, exceeding forecasts and driven by higher interest income and fees.

• Announced a new medium-term management plan targeting net income over JPY 1 trillion and ROE of approximately 10% by FY2028, with a strategic focus on digital transformation, asset management, and regional private equity investment.

• Set a long-term vision to become Japan's leading comprehensive financial platform and a global market player by 2040.

• FY2026 net income is forecast to rise to JPY 660.0 billion, with a dividend per share of JPY 93, up JPY 19 year-over-year.

• Total assets decreased by JPY 7,029.9 billion to JPY 226,571.5 billion, while securities and loans increased.

Financial highlights

• FY2025 net income reached JPY 525.5 billion, up 26.8% year-over-year, and net interest income rose to JPY 1,536.3 billion, driven by higher yen interest rates.

• Net fees and commissions increased to JPY 167.5 billion, and net income per share rose to JPY 147.10.

• Dividend per share increased to JPY 74 for FY2026, with a planned rise to JPY 93 for FY2027, and share repurchases totaling JPY 30 billion in FY2025.

• Capital adequacy ratio at 14.93% and CET1 ratio at 11.03% as of March 31, 2026.

• General and administrative expenses increased to JPY 946.4 billion, mainly due to growth investments.

Outlook and guidance

• FY2026 guidance: net income JPY 660.0 billion, net interest income JPY 1,782.0 billion, and G&A expenses JPY 997.0 billion.

• Medium-term targets for FY2028: net income over JPY 1 trillion, ROE around 10%, OHR approx. 40%, CET1 ratio 11–13%.

• Shareholder returns to be maintained with a payout ratio around 50% and ongoing share repurchases.

• Focus on four business strategies under the new medium-term plan amid global uncertainties.