Mebuki Financial Group (7167) Q2 2025 earnings summary

Executive summary

• Net income attributable to owners rose 36.1% year-over-year to ¥32.0bn, the highest interim profit since business integration, driven by higher interest income on yen loans and improved securities income.

• Ordinary profit increased by 37.3% year-over-year to ¥46.1bn, supported by rising domestic interest rates and expanded customer fees.

• Comprehensive income declined 10.2% year-over-year to ¥18.5bn due to lower unrealized gains on securities.

• Upward revision of FY2024 forecast: net income now expected at ¥56.0bn (+¥4.0bn from initial), ROE at 5.6%.

• Interim dividend increased to ¥7.00 per share, with full-year forecast revised upward to ¥16.00 per share.

Financial highlights

• Gross business profit rose ¥20.4bn year-over-year to ¥95.1bn; net interest income up to ¥78.4bn.

• Loans outstanding grew by ¥605.6bn year-over-year (+5.0%), with interest income on domestic loans up ¥4.1bn.

• Deposit balance increased by ¥217.7bn year-over-year (+1.2%), with end-period deposits at ¥17.34 trillion.

• Securities portfolio balance reached ¥4,464.8bn, up ¥800.0bn since March 2023, with increased purchases of domestic and foreign bonds.

• Credit-related costs rose to ¥2.6bn, while allowance for loan losses decreased to ¥80.8bn.

Outlook and guidance

• FY2024 net income forecast revised upward to ¥56.0bn (+29.1% YoY), ordinary profit to ¥80.0bn (+26.8% YoY), and ROE to 5.6%.

• Positive impact expected from further domestic interest rate rises, with net interest income projected to increase by up to ¥37.0bn if policy rate reaches 0.50%.

• Dividend forecast raised, reflecting strong earnings and capital policy.