Rakuten Bank (5838) Q4 2025 earnings summary

Executive summary

• Achieved record highs in ordinary income (JPY 184.5bn, +33.7% YoY), ordinary profit (JPY 71.5bn, +47.8% YoY), and net income (JPY 50.7bn, +47.4% YoY), surpassing revised forecasts.

• Number of bank accounts reached 16.83 million (+10.4% YoY), maintaining position as Japan's No.1 digital bank.

• Total deposit balance grew to JPY 11.48tn (+8.8% YoY) as of March 31, 2025.

• No dividends were paid for the fiscal year, and none are forecast for the next fiscal year.

Financial highlights

• Interest income surged to JPY 128.1bn (+51.6% YoY), driven by BOJ rate hike and asset accumulation.

• Fees and commissions rose by JPY 3.5bn to JPY 46.3bn, reflecting more main account usage.

• Gross operating profit rose to JPY 122.7bn (+32.6% YoY); G&A expense ratio improved to 35.6% (-6.9pts YoY).

• ROE increased to 18.0% (+3.9pts YoY); capital adequacy ratio remained sound at 10.6%.

• Cash and cash equivalents at year-end decreased by JPY 549.2bn to JPY 4.24tn.

Outlook and guidance

• FY2025 forecast: ordinary income JPY 246.8bn (+33.7% YoY), ordinary profit JPY 91.2bn (+27.5% YoY), net income JPY 64.3bn (+26.7% YoY), assuming BOJ policy rate of 0.50%.

• Medium-term targets (FY2026): 25 million accounts, JPY 20tn deposits, ordinary income JPY 200bn, ordinary profit JPY 70bn.