Mebuki Financial Group (7167) Q1 2027 earnings summary

Executive summary

• Consolidated net income for 1Q26 reached ¥34.5bn, up 55.2% YoY, marking a record high since business integration, driven by higher interest margins and increased securities income despite higher expenses from human capital investments.

• Ordinary income rose 39.2% YoY to ¥137,903 million, and comprehensive income reached ¥52,684 million, up 38.1% YoY.

Financial highlights

• Core net business income rose ¥8.8bn YoY to ¥37.3bn, mainly from expanded loan-deposit interest spreads and securities income.

• Ordinary profit increased by ¥17.8bn YoY to ¥49,858 million, supported by gains on securities and improved interest margins.

• Net interest income grew by ¥9,365 million YoY to ¥54,785 million, with loan yields rising 23.3bp and average loan balances up ¥545.5bn.

• Loans outstanding increased by ¥508.7bn YoY (+3.9% annualized), with corporate loans up 5.0% and individual loans up 2.6%.

• Deposits rose by ¥218.9bn YoY (+1.2% annualized), led by corporate deposits.

• Customer assets under custody surged ¥581.6bn YoY (+22.1% annualized), with commissions up ¥1.59bn (+48.4% annualized).

• Total assets as of June 30, 2026, were ¥21,887,708 million, up from ¥21,173,586 million at March 31, 2026.

• Net assets increased to ¥1,114,825 million from ¥1,077,192 million at the previous fiscal year-end.

• Basic earnings per share for the quarter were ¥36.76, up from ¥23.25 a year earlier.

• Consolidated gross profit for the quarter was ¥50,406 million, down ¥6,566 million YoY.

Outlook and guidance

• FY2026 consolidated ordinary profit forecast revised up to ¥153.5bn (+¥14.5bn from initial), and net income to ¥105.0bn (+¥10.0bn from initial), reflecting expected growth from BOJ rate hikes and robust core business.

• ROE projected at approximately 9.5% for FY2026.

• Annual dividend per share forecast raised to ¥44, payout ratio 39.3%.