ZENKOKU HOSHO (7164) Q3 2026 earnings summary

Executive summary

• Operating revenue for the nine months ended December 31, 2025, increased by 3.9% year-over-year to ¥34,755 million, driven by higher outstanding guarantee exposure and contributions from newly consolidated subsidiaries.

• Operating profit was flat year-over-year (+0.2%) at ¥22,992 million, while ordinary profit rose 2.6% to ¥25,977 million, supported by higher non-operating income.

• Profit attributable to owners of parent declined 1.9% year-over-year to ¥18,013 million.

• Comprehensive income rose 6.6% year-over-year to ¥19,659 million.

• The company focused on expanding its core credit guarantee business, entering related businesses, and enhancing corporate value.

Financial highlights

• Operating revenue: ¥34.8 billion (+3.9% YoY); operating profit: ¥23.0 billion (+0.2% YoY); ordinary profit: ¥26.0 billion (+2.6% YoY).

• Profit attributable to owners of parent: ¥18.0 billion (-1.9% YoY).

• Non-operating income increased by 18.6% YoY, while extraordinary income and loss dropped sharply (-96.6% YoY).

• Total assets decreased 3.0% from March 31, 2025, to ¥477,699 million; net assets fell 3.2% to ¥231,017 million, mainly due to increased treasury shares and reduced retained earnings.

• Current assets dropped 22.9% to ¥123,605 million, while non-current assets rose 6.7% to ¥354,094 million.

Outlook and guidance

• Full-year operating revenue forecasted at ¥59,200 million (+3.9% YoY); ordinary profit expected at ¥45,100 million (+1.3% YoY).

• Profit attributable to owners of parent projected at ¥31,200 million (-2.8% YoY); EPS forecasted at ¥233.77.

• Dividend per share expected to be ¥115, with a payout ratio of 50% and total return ratio over 70%.

• Target ROE set at 14%.