Yokohama Financial (7186) Q3 2025 earnings summary

Executive summary

• Core net business profit excluding bond gains/losses rose ¥15.9bn year-over-year, driven by higher loan balances and improved yield spread from domestic operations.

• Net income attributable to owners of parent increased by ¥8.8bn year-over-year, reaching ¥62.8bn, over 79.9% of the full-year forecast.

• Ordinary profit surged 67.2% to ¥93.3bn, aided by lower expenses and elimination of prior-year write-offs.

• Credit costs remained low, and gains on stocks and securities exceeded plan due to policy shareholding sales.

• Domestic sales and structured finance-related service revenue contributed to growth.

Financial highlights

• Gross operating income (three banks combined) reached ¥244.7bn, 74.9% of the full-year forecast.

• Net interest income was ¥200.5bn, 75.2% of forecast, with interest on domestic loans and deposits up ¥3.9bn year-over-year.

• OHR improved to 50.5% from 61.5% year-over-year.

• Total assets reached ¥24,839.1bn, up ¥457.4bn from March 2024.

• Net income for the period was ¥62.7bn, up ¥8.8bn year-over-year.

Outlook and guidance

• FY2025 forecast: ordinary profit ¥120.0bn (+55.8%), profit attributable to owners of parent ¥78.5bn (+17.2%), EPS ¥67.91.

• Dividend forecast raised to ¥27.00 per share for FY2025.

• If the policy rate is raised to 0.75% in April 2026, gross operating income could increase by ¥46bn in FY2027.

• Trade name change to Yokohama Financial Group, Inc. planned for October 2025, pending approval.

• Transition to a company with an Audit and Supervisory Committee scheduled for June 2025.