ZENKOKU HOSHO (7164) Q4 2025 earnings summary

Executive summary

• Operating revenue rose 10.3% year-over-year to 56.9 billion yen, driven by growth in outstanding guarantee exposure, improved insurance-related revenue, and expansion in the core guarantee business.

• Ordinary profit increased 7.1% year-over-year to 44.5 billion yen, supported by higher yields on securities and ABLs.

• Profit attributable to owners of parent grew 11.4% year-over-year to 32.0 billion yen.

• ROE improved by 0.4 points to 13.8%, marking a turnaround from previous lows.

• Growth was driven by new contracts with financial institutions, M&A activity, and investments in related businesses.

Financial highlights

• Operating profit reached 41.9 billion yen, up 7.3% year-over-year, as expenses remained within plan.

• Extraordinary income included a gain on bargain purchase from M&As.

• Net assets rose 6.0% to 238.7 billion yen, and total assets increased 5.5% to 492.4 billion yen.

• Cash and cash equivalents at year-end were 92.4 billion yen, up 14.7 billion yen from the previous year.

• Outstanding guarantee exposure rose 10.0% year-over-year to 19.4 trillion yen, achieving the medium-term plan target ahead of schedule.

Outlook and guidance

• For FY2026/3, operating revenue is forecast to rise 3.9% to 59.2 billion yen, with ordinary profit expected to grow 1.3% to 45.1 billion yen.

• Profit attributable to owners of parent is projected to decrease 2.8% due to the absence of one-time gains.

• Target ROE for FY2026/3 is set at 14%.

• Outstanding guarantee exposure is expected to reach 21 trillion yen.

• The housing and housing loan markets are expected to remain firm short-term but face long-term contraction due to demographic trends.