Mebuki Financial Group (7167) Q3 2025 earnings summary

Executive summary

• Net income attributable to owners rose by ¥16.7bn YoY to ¥49.1bn, the highest third quarter profit since business integration, up 51.7% YoY.

• Ordinary profit increased 50.9% YoY to ¥70.4bn, reflecting strong core banking operations.

• Profit growth was driven by higher interest income on yen loans, improved securities income, and gains on securities.

• Comprehensive income declined to ¥18.9bn from ¥62.9bn a year earlier, mainly due to negative other comprehensive income.

• Upward revision of FY2024 net income forecast to ¥56.0bn, with ROE projected at 5.6%.

Financial highlights

• Net income (consolidated) for 3Q24: ¥49.1bn (+51.7% YoY); ordinary profit: ¥70.3bn (+23.7bn YoY).

• Gross business profit: ¥135.1bn (+¥26.7bn YoY); consolidated gross profit for nine months: ¥141.6bn (up from ¥117.0bn YoY).

• Net interest income increased to ¥117.4bn (+¥9.2bn YoY); net fees and commissions to ¥27.6bn.

• Basic earnings per share was ¥49.02, up from ¥30.85 YoY.

• Credit related costs rose to ¥4.9bn, mainly due to the absence of prior year reversals.

Outlook and guidance

• FY2024 net income forecast revised upward to ¥56.0bn (+¥4.0bn from initial), ordinary profit to ¥80.0bn.

• Progress toward full-year targets: net income 87.6%, ordinary profit 87.9% as of 3Q24.

• Annual dividend forecast is ¥16.00 per share, unchanged from previous guidance.

• Minimal impact expected from policy rate changes in March 2025 on current fiscal year results.