Rakuten Bank (5838) Q1 2026 earnings summary

Executive summary

• Achieved record highs in ordinary income, ordinary profit, and net income for Q1 FY2025, driven by strong interest income growth and customer acquisition leveraging the Rakuten Ecosystem.

• Number of bank accounts surpassed 17 million, with main accounts growing at a faster pace, supporting deposit growth and profitability.

• Continued expansion of personal loan products and introduction of new offerings such as reverse mortgages and securities-backed loans to address diverse customer needs.

• Launched a shareholder benefit program and published the first integrated report to enhance transparency and shareholder engagement.

Financial highlights

• Q1 FY2025 consolidated ordinary income: JPY57.5bn (+40.8% YoY); ordinary profit: JPY23.9bn (+56.8% YoY); net income: JPY16.8bn (+54.1% YoY).

• Interest income rose 66.7% YoY to JPY43.6bn, while non-interest income declined 5.4% YoY to JPY13.7bn.

• Total deposit balance reached JPY11.7tn (+7.1% YoY); capital adequacy ratio at 10.6% (down 0.7pts YoY).

• ROE (annualized, consolidated) improved to 21.6% (+5.1pts YoY); G&A expense ratio improved to 32.3% (-5.5pts YoY).

• Profit per share for the quarter was JPY96.48, up from JPY62.59 a year earlier.

Outlook and guidance

• FY2025 consolidated forecasts: ordinary income JPY246.8bn (+33.7% YoY), ordinary profit JPY91.2bn (+27.5% YoY), net income JPY64.3bn (+26.7% YoY).

• Medium- to long-term targets (FY2026): 25 million accounts, JPY20tn deposits, ordinary income JPY200bn, ordinary profit JPY70bn.

• Revising medium- to long-term vision to reflect positive interest rate environment.

• Profit per share for the fiscal year ending March 31, 2026 is forecast at JPY368.79.

• No dividend is planned for the fiscal year.