Yokohama Financial (7186) Q2 2026 earnings summary

Executive summary

• Interim profit attributable to owners of parent rose to ¥55.0 bn, up ¥10.7 bn year-over-year, achieving 57.6% of the full-year forecast, aided by the consolidation of L&F Asset Finance, Ltd.

• Ordinary income increased by ¥47.9 bn year-over-year to ¥238.2 bn, driven by higher interest income from loans and strong fee and commission revenue, especially from corporate clients and solution-based businesses.

• Comprehensive income surged to ¥110.6 bn, up 259.7% year-over-year.

• Upward revision of FY2025 net profit forecast to ¥103.0 bn, with a planned increase in dividends per share and a share buyback upper limit of ¥30.0 bn.

Financial highlights

• Gross operating income for 1H FY25 was ¥138.4 bn, up ¥15.1 bn year-over-year, with a 51.5% achievement rate.

• Net interest income reached ¥121.3 bn, up ¥18.7 bn year-over-year.

• Net income per share for the six months ended September 30, 2025, was ¥48.24, up from ¥38.05 a year earlier.

• Loans and bills discounted grew by ¥719.6 bn to ¥17,465.3 bn, while deposits decreased by ¥272.5 bn to ¥20,140.4 bn.

• Non-performing loans remained stable at ¥224.9 bn, with an NPL ratio of 1.2%.

Outlook and guidance

• FY2025 net profit forecast revised upward to ¥103.0 bn, up ¥7.5 bn from the initial forecast.

• Full-year consolidated ordinary profit is forecast to rise by ¥28.2 bn to ¥151.0 bn.

• Annual dividend forecast was raised to ¥37.00 per share, up ¥3.00 from the previous forecast.

• Gross operating income forecast for FY2025 is ¥275.1 bn, with net interest income at ¥235.9 bn.

• Estimated revenue increase of ¥17.0 bn if the policy rate rises to 0.75%.