Yokohama Financial (7186) Q4 2025 earnings summary

Executive summary

• Net income and ROE significantly exceeded prior year, driven by strong domestic sales, loan growth, and higher interest income.

• Consolidated profit attributable to owners of parent rose to ¥82.8 bn, up ¥15.8–15.9 bn year-over-year.

• Ordinary profit increased by ¥45.7–45.8 bn to ¥122.7–122.8 bn.

• All major subsidiaries reported increased sales and profits, with leasing and guarantee businesses showing notable gains.

• Deposits surpassed ¥20 trillion for the first time, and loans and bills discounted increased by ¥142.9 bn to ¥16.75 trillion.

Financial highlights

• Gross operating income reached ¥244.4–260.3 bn, up ¥39.1 bn or 16.4% year-over-year; net interest income rose to ¥211.4 bn (+¥23.8 bn).

• Core net business profit excluding bond/investment trust gains/losses was ¥133.7 bn, up ¥24.1 bn year-over-year.

• Credit costs remained low at ¥9.4 bn, with a credit cost ratio of 0.05% and NPL ratio at 1.3%.

• OHR improved to 51.5–52.0%, down 8–9.1pt year-over-year.

• Net income per share was ¥71.63, up from ¥57.16 year-over-year.

Outlook and guidance

• FY2025 forecast: profit attributable to owners of parent to rise 15% to ¥95.5 bn.

• FY2026 forecast: ordinary profit at ¥145.0 bn (+¥22.3 bn), profit attributable to owners of parent at ¥95.5 bn (+¥12.7 bn).

• Gross operating income projected at ¥268.5 bn (+¥24.1 bn); net interest income at ¥228.1 bn (+¥16.6 bn).

• ROE expected to reach 7.3%; OHR to improve to 49.8%.

• L&F Asset Finance, acquired in April 2025, expected to contribute ¥4.3 bn to profit after goodwill amortization.