Rakuten Bank (5838) Q3 2025 earnings summary

Executive summary

• Ordinary income for Q1–Q3 FY2024 reached JPY131.7bn, up 30.3% YoY, with ordinary profit at JPY49.4bn (+40.4% YoY) and net income at JPY35.1bn (+40.2% YoY).

• Deposit balance exceeded JPY12tn, growing 16.9% YoY, and the number of accounts reached 16.48 million (+11.6% YoY), maintaining Japan's top digital bank status.

• Main accounts, which are more profitable, increased faster than total accounts, now comprising 32.6% of all accounts.

• Launched "JRE BANK" services in partnership with East Japan Railway Company, contributing to customer growth.

• Upward revision of full-year FY2024 forecasts: ordinary income now expected at JPY183.6bn (+33.1% YoY), ordinary profit at JPY69.0bn (+42.6% YoY), and net income at JPY48.9bn (+42.0% YoY).

Financial highlights

• Interest income for Q1–Q3 FY2024 rose 44.3% YoY to JPY86.4bn, outpacing non-interest income, which grew 5.8% YoY to JPY40.2bn.

• Fees and commissions rose by JPY2.5bn to JPY34.4bn, reflecting increased account usage.

• Gross operating profit increased 28.8% YoY to JPY87.6bn, with adjusted net interest income up 43.4% YoY.

• General and administrative expense ratio improved to 36.7% (down 6.1pts YoY), reflecting enhanced management efficiency.

• Diluted profit per share for the period was JPY201.49, up from JPY144.75 a year earlier.

Outlook and guidance

• Full-year FY2024 forecasts were revised upward in November and again after Q3, with progress rates for ordinary income, profit, and net income all exceeding 73%.

• Profit per share forecast for the year is JPY280.25.

• No dividend is planned for the fiscal year; focus remains on growth and capital adequacy.

• Medium- to long-term vision targets 25 million accounts and JPY20tn in deposits by FY2026.