Mebuki Financial Group (7167) Investor presentation summary

Financial performance highlights

• Net income attributable to owners rose ¥15.5bn YoY to ¥64.6bn, marking a record third-quarter profit since integration.

• Core net business income increased by ¥19.9bn YoY to ¥86.9bn, driven by higher loan-deposit interest margins and securities income.

• Ordinary profit forecast for FY2025 was revised upward to ¥113.0bn, with net income forecast at ¥81.0bn.

• ROE improved to 8.1%, up 0.6 percentage points from the previous forecast.

• Shareholder returns for FY25 are expected to reach ¥56.3bn, with a payout ratio of 32.5% and total return ratio of 69.5%.

Loans and deposits

• Total loans increased by ¥622.0bn YoY (+4.8% annualized), with strong growth in corporate and steady growth in individual loans.

• Corporate loans grew 6.1% annualized, supported by robust equipment financing and working capital demand.

• Individual unsecured loans rose 11.2% YoY, mainly in educational loans.

• Deposit balances increased by ¥207.0bn YoY (+1.1% annualized), though growth rates are slowing.

• Loan-to-deposit ratio recovered to the 70% range due to loan growth.

Interest income and yields

• Net interest income rose ¥24.2bn YoY, with the difference between loan and deposit interest up ¥7.6bn.

• Average yield on loans increased by 23.2bp YoY, reflecting higher domestic interest rates.

• Securities income increased ¥16.5bn YoY, aided by portfolio rebalancing and higher BOJ deposit interest.