Mebuki Financial Group (7167) Q1 2026 earnings summary

Executive summary

• Net income attributable to owners rose ¥3.8bn year-over-year to ¥22.2bn, achieving 31.7% of the FY2025 forecast.

• Ordinary profit increased 21.1% year-over-year to ¥31,690 million, with net income up 21.1% to ¥22,223 million.

• Core net business income reached ¥28.5bn, the highest first-quarter profit since business integration, driven by higher interest margins and securities income.

• Comprehensive income rebounded to ¥38,130 million from a loss of ¥6,135 million in the prior year period.

• Ordinary income rose 21.0% year-over-year to ¥99,014 million for the quarter ended June 30, 2025.

Financial highlights

• Consolidated net income: ¥22.2bn (+¥3.8bn YoY); core net business income: ¥28.5bn (+¥5.8bn YoY).

• Net interest income rose ¥7.7bn YoY, supported by a ¥0.9bn increase in loan-deposit interest difference.

• Basic earnings per share for the quarter were ¥23.25, up from ¥18.14 year-over-year.

• Total assets reached ¥21,718,167 million as of June 30, 2025, up from ¥21,408,384 million at March 31, 2025.

• Expenses increased ¥1.3bn YoY to ¥28.3bn, mainly due to investments in human capital.

Outlook and guidance

• FY2025 targets: ordinary profit ¥100.0bn, net income ¥70.0bn, both on track with over 30% progress in 1Q.

• Fiscal year 2025 forecast: ordinary profit of ¥100,000 million (up 20.7% YoY), net income of ¥70,000 million (up 20.2%), and EPS of ¥73.80.

• Highest profit since business integration expected, leveraging rising interest rates and strategic initiatives.

• Annual dividend forecast raised to ¥24.00 per share, up from ¥16.00 in the previous fiscal year.

• ROE forecasted at 7.0% (+1.1%pt YoY); RORA at 1.28%.