Mebuki Financial Group (7167) Q1 2025 earnings summary

Executive summary

• Net income attributable to owners rose ¥2.7bn YoY to ¥18.3bn, reaching 35.2% of the FY2024 forecast.

• Ordinary profit increased by ¥4.0bn YoY to ¥26.1bn, reflecting improved interest and fee income.

• Ordinary income rose 3.3% YoY to ¥81.8bn for Q1 FY2024.

• Net income per share was ¥18.14, up from ¥14.65 in the prior year period.

• Profit from customer services hit a record high for the first quarter since business integration in 2016.

Financial highlights

• Gross business profit grew by ¥6.7bn YoY to ¥51.2bn; net interest income up ¥1.6bn to ¥37.5bn.

• Net fees and commissions increased to ¥12.7bn.

• Credit related costs remained low at ¥0.8bn, up ¥1.0bn YoY.

• Comprehensive income was negative ¥6.1bn, compared to ¥43.2bn positive in Q1 FY2023, mainly due to unrealized losses on securities.

• Loans increased by ¥592.8bn YoY (+5.0% annualized); deposits up ¥332.8bn YoY (+1.9% annualized).

Outlook and guidance

• FY2024 net income forecast at ¥52.0bn (+¥8.6bn YoY); ROE target 5.3%.

• Ordinary profit forecast at ¥75.0bn (+18.9% YoY); progress at 34.8% after 1Q.

• Annual dividend forecast raised to ¥14.00 per share from ¥12.00 last year.

• Positive impact on net interest income expected if policy rates rise further, with simulations showing +¥44.0bn to +¥60.0bn over five years.

• Interim forecast: ordinary profit ¥36.5bn, net income attributable to owners ¥25.0bn.