Yokohama Financial (7186) Q3 2026 earnings summary

Executive summary

• Profit attributable to owners of parent rose 35% year-over-year to ¥85.0 bn, achieving 82.5% of the full-year forecast, aided by the consolidation of L & F Asset Finance, Ltd.

• Ordinary income increased by ¥67.8 bn year-over-year to ¥356.7 bn, driven by higher interest income and fees, especially from corporate client services.

• ROE improved to 8.4%, up 1.9 percentage points year-over-year, driven by profit growth.

• Net interest income increased due to higher yield spreads and growth in loans and deposits.

• Credit costs remained extremely low at ¥0.9 bn, with asset quality stable.

Financial highlights

• Gross operating income reached ¥206.3 bn, up ¥22.8 bn year-over-year, with a 75.0% achievement rate.

• Net income per share for the nine months was ¥74.73, up from ¥54.07 year-over-year.

• Total assets increased by ¥427.3 bn to ¥25,220.5 bn; net assets rose by ¥113.0 bn to ¥1,405.6 bn.

• Net interest income from domestic operations was ¥131.5 bn, up ¥15.3 bn year-over-year.

• Expenses were controlled as planned, with OHR declining to 48.0%.

Outlook and guidance

• FY25 profit attributable to owners of parent is forecast at ¥103.0 bn, with ordinary profit forecast at ¥151.0 bn and net income per share of ¥90.70.

• Dividend forecast for the fiscal year is ¥37.00 per share.

• Share buyback program in progress, with ¥13.0 bn acquired by January 31 against a ¥30.0 bn upper limit.

• Estimated impact of a 0.25% policy rate increase is approximately ¥17.0 bn on gross operating income.