SBI Holdings (8473) Q1 2025 earnings summary

Executive summary

• Consolidated revenue for Q1 FY2024 rose 9.3% year-over-year to JPY 330.5 billion, with profit before income tax up 20.3% to JPY 51.7 billion, both record highs for the quarter.

• Profit attributable to owners declined 12.6% year-on-year to JPY 21.4 billion, impacted by one-time factors, extraordinary losses, and absence of prior year gains.

• Financial Services, Asset Management, and Crypto-asset businesses achieved record Q1 results, while Investment and Next Gen businesses posted losses.

• Management emphasizes long-term growth, strategic resource allocation, and business portfolio reorganization.

Financial highlights

• Revenue: JPY 330.5 billion (+9.3% YoY); Profit before income tax: JPY 51.7 billion (+20.3% YoY); Profit for the period: JPY 38.4 billion (+19.2% YoY).

• Profit attributable to owners: JPY 21.4 billion (-12.6% YoY), affected by non-recurring prior year gains, extraordinary losses at affiliates, and fair value losses on listed stocks.

• Record highs in Financial Services (revenue +11.2% YoY, profit before tax +70.2% YoY), Asset Management (+36.4% revenue, +162.1% profit), and Crypto-asset (+172.2% revenue, +172.5% profit) segments.

• Investment Business revenue up 1.1% YoY, but profit before tax swung to a loss due to fair value declines in listed securities.

• Total assets increased to JPY 28,163.4 billion as of June 30, 2024.

Outlook and guidance

• Management expects temporary negative factors to reverse if market conditions stabilize and highlights focus on full-year growth.

• BOJ rate hike expected to add JPY 13 billion in profit for the year, with Shinsei Bank contributing JPY 2.1 billion.

• Asset Management aims to surpass JPY 20 trillion AUM by FY2027, leveraging product diversification and joint ventures.

• Ongoing expansion in digital assets, overseas business profitability, and semiconductor-related business entry.

• Dividend forecast for the fiscal year ending March 31, 2025, is yet to be determined.