ZENKOKU HOSHO (7164) Q1 2025 earnings summary

Executive summary

• Operating revenue for the three months ended June 30, 2024, rose 2.1% year-over-year to ¥10,761 million, driven by accumulation of outstanding guarantee exposure.

• Operating profit declined 6.0% year-over-year to ¥7,346 million due to higher credit, personnel, and system-related expenses.

• Ordinary profit decreased 2.6% year-over-year to ¥8,150 million, despite higher non-operating income from asset management and ABLs.

• Profit attributable to owners of parent fell 9.7% year-over-year to ¥5,660 million, impacted by the absence of prior year's gain on bargain purchase.

• Achieved medium-term management plan target of 1.2 trillion yen in outstanding guarantee exposure ahead of schedule through acquisition.

Financial highlights

• Operating revenue: 10,761 million yen (+2.1% YoY).

• Operating profit: 7,346 million yen (-6.0% YoY).

• Ordinary profit: 8,150 million yen (-2.6% YoY).

• Profit attributable to owners of parent: 5,660 million yen (-9.7% YoY).

• Comprehensive income for the quarter was ¥5,703 million, down 11.6% year-over-year.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2025: operating revenue ¥55,700 million (up 7.9%), operating profit ¥40,600 million (up 3.8%), ordinary profit ¥43,200 million (up 3.9%), profit attributable to owners of parent ¥30,000 million (up 4.2%), and profit per share ¥439.27.

• Outstanding guarantee exposure projected to reach 19 trillion yen by March 2025.

• Amount of new guarantees granted expected to grow 7.5% year-over-year.

• Total return ratio for FY2025/3 anticipated at around 68%.

• No revisions to the previously announced forecast.