ZENKOKU HOSHO (7164) Q2 2026 earnings summary

Executive summary

• Operating revenue for the six months ended September 30, 2025, rose 4.6% year-over-year to 23.0 billion yen, driven by increased outstanding guarantee exposure and contributions from newly consolidated subsidiaries.

• Ordinary profit increased 2.3% year-over-year to 16.8 billion yen, while profit attributable to owners of parent declined 4.6% to 11.6 billion yen.

• Operating profit was nearly flat at 14.9 billion yen (down 0.1% YoY).

• The company focused on expanding its core guarantee business, entering related businesses, and enhancing corporate value through treasury share purchases and human capital investments.

• Organic growth was supported by a 5.6% year-over-year increase in the amount of new guarantees granted, though the number of new guarantees remained flat.

Financial highlights

• Operating revenue: 23.0 billion yen (+4.6% YoY); Operating profit: 14.9 billion yen (-0.1% YoY); Ordinary profit: 16.8 billion yen (+2.3% YoY); Profit attributable to owners of parent: 11.6 billion yen (-4.6% YoY).

• Comprehensive income for the period was 12.7 billion yen, up 4.0% year-over-year.

• Profit per share was 87.08 yen, reflecting a two-for-one share split effective April 1, 2025.

• Total assets decreased 2.4% from March 31, 2025, to 480.7 billion yen; net assets fell 3.6% to 230.0 billion yen.

• Operating expenses increased 14.2% year-over-year, mainly due to higher credit and system-related costs.

Outlook and guidance

• Full-year operating revenue forecasted at 59.2 billion yen (+3.9% YoY), with ordinary profit expected to reach 45.1 billion yen (+1.3% YoY).

• Profit attributable to owners of parent projected at 31.2 billion yen (-2.8% YoY); EPS forecasted at 233.77 yen.

• Target ROE for the fiscal year is 14%.

• Annual dividend per share expected to be 115 yen, with a payout ratio of 50%.

• Operating profit for the full year is forecasted at 41.6 billion yen (+10.9% YoY).