Kyoto Financial Group (5844) Q4 2026 earnings summary

Executive summary

• FY2025 net income attributable to owners of parent hit a record JPY96.7bn, up JPY60.1bn YoY; excluding Nintendo share-sale gains, it was ~JPY45.0bn and also a record.

• Record earnings reflected higher interest income and gains from strategic equity sales; ROE was 8.7% on a net-asset basis.

• The FY2026–FY2028 plan targets ROE of at least 8% and net income of at least JPY90.0bn by FY2028, with ambitions of 10% ROE and net income above JPY100.0bn.

Financial highlights

• Consolidated ordinary profit rose to JPY137.1bn from JPY50.9bn, while net income attributable to owners of parent increased to JPY96.7bn from JPY36.5bn.

• Net interest income increased JPY6.6bn YoY to JPY91.0bn; net fees and commissions rose JPY2.3bn to JPY20.7bn and reached a sixth consecutive annual record.

• Deposits grew JPY313.9bn to JPY9,575.0bn and loans rose JPY322.6bn to JPY7,590.9bn; securities holdings decreased JPY653.9bn to JPY2,650.9bn.

• Securities results included JPY176.6bn of income related to shares, including JPY167.2bn from strategic equity holdings; bond losses were JPY91.1bn.

• FY2025 expenses were JPY66.4bn and consolidated OHR was 56.43%; its calculation deducts subsidiary dividends from gross operating profit.

Outlook and guidance

• FY2026 forecasts are consolidated ordinary income of JPY225.9bn, ordinary profit of JPY77.6bn and net income attributable to owners of parent of JPY52.0bn; underlying profit excluding the Nintendo sale is projected to rise JPY7.0bn YoY.

• FY2028 targets include ROE of at least 8%, net income of at least JPY90.0bn, OHR in the 40% range and a JPY10tn deposit balance; ambitions are 10% ROE and net income above JPY100.0bn.

• Plan assumptions include annual 0.25% policy-rate increases from 2026, reaching 1.5% in FY2028.

• FY2026 dividend is planned at JPY105 per share, JPY25 above the prior year's ordinary dividend; anticipated total payout ratio is 79%, including buybacks.

• FY2028 investment targets include at least JPY15.0bn for IT/DX and at least JPY7.0bn for human capital.