Yokohama Financial (7186) Q1 2025 earnings summary

Executive summary

• Ordinary income rose 9.7% year-over-year to ¥92.6 billion, driven by higher interest income and gains on securities sales.

• Ordinary profit surged 396.1% to ¥32.7 billion, reflecting lower ordinary expenses and improved loan yields.

• Profit attributable to owners of parent increased 11.2% to ¥22.7 billion compared to the same quarter last year.

• Comprehensive income dropped 81.1% year-over-year to ¥10.7 billion, mainly due to negative valuation differences on securities.

Financial highlights

• Net income per share was ¥19.46, up from ¥17.34 year-over-year.

• Gross operating income for the banking group rose ¥24.3 billion to ¥60.1 billion, with core net business profit up ¥24.6 billion to ¥29.5 billion.

• Credit costs decreased by ¥0.7 billion, and gains on stocks and other securities increased by ¥2.4 billion.

• Net unrealized gains on available-for-sale securities fell by ¥29.3 billion from March 2024.

Outlook and guidance

• Full-year forecast for ordinary profit is ¥109 billion, up 41.5% from the previous year.

• Profit attributable to owners of parent is projected at ¥75 billion, a 12.0% increase year-over-year.

• Annual dividend forecast is ¥26.00 per share, up from ¥23.00 in the previous year.