Yokohama Financial (7186) Q2 2025 earnings summary

Executive summary

• Gross operating income for 1H FY2024 rose to ¥123.3bn, up ¥29.5bn year-over-year, with net income at ¥44.5bn, a ¥24.0bn increase, driven by strong domestic sales and higher net interest income.

• Ordinary profit doubled to ¥64.2bn, and profit attributable to owners of parent increased 17.0% to ¥44.3bn compared to the same period last year.

• Upward revision of FY2024 outlook: net income forecast raised to ¥77.2bn, ordinary profit to ¥113.5bn, reflecting robust loan growth and fee income.

• Announced acquisition of 85% of Sumitomo Mitsui Trust Loan & Finance for approx. ¥54.5bn, targeting real estate loan expansion and ROE improvement.

• Comprehensive income fell 55.3% year-over-year to ¥30.7bn due to valuation losses on available-for-sale securities.

Financial highlights

• Net interest income for 1H FY2024 reached ¥102.5bn, up ¥8.7bn year-over-year, with loan interest rising ¥5.2bn and deposit interest up ¥2.6bn.

• Net fees and commissions increased to ¥22.0bn, up ¥0.5bn year-over-year, with both corporate and individual client revenues growing.

• Core net business profit (excluding bond gains/losses) was ¥63.8bn, up ¥8.1bn year-over-year.

• Net income per share was ¥38.05, up from ¥32.22 year-over-year.

• Credit costs remained low at ¥4.0bn, with a credit cost ratio of 0.04%.

Outlook and guidance

• Full-year consolidated ordinary profit forecast raised to ¥120.0bn, up ¥43.0bn year-over-year.

• FY2024 net income forecast revised upward to ¥77.2bn, ordinary profit to ¥113.5bn, driven by higher net interest income and fee growth.

• Profit attributable to owners of parent projected at ¥78.5bn, up ¥11.6bn year-over-year.

• Net interest income from domestic operations expected at ¥190.2bn, up ¥8.4bn from initial forecast.

• Annual dividend forecast increased to ¥27.00 per share.