SBI Shinsei Bank (8303) Q1 2027 earnings summary

Executive summary

• Achieved record first-quarter total revenue of JPY 104.3bn, up 20% year-over-year, driven by strong net interest income and diversified noninterest income streams.

• Ordinary income rose 25.4% year-over-year to ¥226.7 billion for Q1 FY2026, with ordinary profit up 43.3% to ¥52.0 billion and profit attributable to owners of parent at ¥38.5 billion, down 13% from the prior year.

• Net income before income taxes reached a record JPY 52.0bn, up 42% year-over-year, with net income attributable to parent at JPY 38.4bn.

• Comprehensive income decreased 37.1% year-over-year to ¥40.7 billion.

• Interim dividends introduced, with an annual dividend target of at least JPY 42 per share.

Financial highlights

• Net interest income surged 52% year-over-year to JPY 47.1bn, supported by higher asset yields and rising interest rates.

• Noninterest income rose 2% to JPY 57.2bn, with growth in leasing, installment sales, and fee income, plus capital gains and inorganic initiatives.

• Net fees and commissions grew by ¥3.8 billion to ¥14.2 billion, and net trading income improved by ¥6.6 billion to ¥4.7 billion.

• Expense ratio improved to 43.5% from 50.2% a year ago, despite a slight increase in expenses due to higher system and personnel costs.

• Net credit costs remained low at JPY 8.0bn, with a credit cost ratio of 0.06%.

Outlook and guidance

• FY2026 plan targets net income before income taxes of JPY 132.0bn, aiming to achieve medium-term profitability KPIs one year ahead of schedule.

• FY2027 income before income taxes is forecast at ¥132.0 billion, an 8.1% increase year-over-year.

• New management strategy to be announced between March and May 2027.

• Dividend forecast for FY2027 is at least ¥42.00 per share.