Yokohama Financial (7186) Q4 2026 earnings summary

Executive summary

• Profit attributable to owners of parent rose to ¥106.5 billion, up ¥23.7 billion year-over-year, with ROE at 7.9%, both exceeding the previous year and the revised plan.

• Ordinary income increased by ¥91.6 billion year-over-year to ¥490.7 billion, driven by higher interest income and strong fee and commission revenue from corporate client services.

• Ordinary profit rose by ¥32.2 billion to ¥155.0 billion, aided by the consolidation of L & F Asset Finance, Ltd.

• Comprehensive income surged 236.2% year-over-year to ¥196.5 billion, reflecting improved market conditions and portfolio management.

• Disciplined cost control reduced OHR to below 49%.

Financial highlights

• Gross operating income reached ¥273.3 billion, with net interest income at ¥249.3 billion (YoY +¥37.8 billion).

• Net fees and commissions from domestic operations increased to ¥47.0 billion (YoY +¥2.4 billion), driven by structured finance.

• Credit costs were ¥7.4 billion, down YoY, and ordinary profit was ¥155.0 billion (YoY +¥32.2 billion).

• Total assets: ¥25,670.5 billion (+¥877.3 billion YoY); net assets: ¥1,418.3 billion.

• Deposits increased by ¥464.2 billion to ¥20,877.2 billion; loans and bills discounted up ¥921.7 billion to ¥17,667.4 billion.

Outlook and guidance

• FY26 profit attributable to owners of parent is forecast at ¥129.0 billion (YoY +21%), with ROE targeted at 9.0%.

• Dividend forecast for FY2027: ¥47.00 per share, maintaining a 40.4% payout ratio.

• Growth expected from higher interest on deposits and loans, improved securities income, and upwardly revised loan growth outlook.