Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
1.3
Year-on-year change (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFiscal year ending March 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Ordinary income¥561 100 million-4.1%
Net income¥430 100 million+1.3%
Full-year earnings forecast
Consolidated
Ordinary income
¥610 100 million
Profit attributable to owners of the parent
¥440 100 million
Standalone
Ordinary income
¥580 100 million
Net income for the current fiscal year
¥420 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Net interest income, etc.¥-13 100 million
- Non-interest income¥19 100 million
- Expenses¥-30 100 million
- Net interest income¥296 100 million
- Bond portfolio maintenance¥-316 100 million
- Human resources, digital-related investments, etc.¥-4 100 million
- Infrastructure costs, etc.¥-26 100 million
- Group Companies¥13 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company refers to higher funding costs, but the numerical assumptions are not disclosedNew initiatives
- Established a dedicated team for growth strategy investments in April 2026
- Set a near-term investment allocation of ¥10.0 billion for growth strategy investments
- Established a dedicated DX and AI strategy team in April 2026
- Promoting group-wide DX, starting with the introduction of a RAG chatbot
- Acquisition and cancellation of part of the treasury preferred investments
- Revision of the basic policy on profit allocation
Key KPIsA metric the company considers important as a management benchmark.
- Consolidated capital adequacy ratio (domestic standards)21.95 ％Year on year against the same period last year-1.5%
- Net valuation difference on securities after hedging¥-1,629 100 millionYear on year against the same period last year+995.0%
- Loan balance¥122,345 100 millionYear on year against the same period last year+29,474.0%
- Non-performing loan ratio0.17 ％Year on year against the same period last year-0.1%
- Total interest spread0.15 ％Year on year against the same period last year+0.1%
- ROE (based on net income)3.2 ％Year on year against the same period last year+0.5%
Medium-term management plan targets
Plan nameSCB Strategy 2025
Target fiscal yearFiscal year ending March 2028 (final year of the medium-term plan)
Profit attributable to owners of the parentApproximately ¥45.0 billion
Consolidated capital adequacy ratio15% or higher
Distributable amount¥200 billion or more
Actual resultsNet income attributable to owners of the parent: ¥43.0 billion; consolidated capital adequacy ratio: 21.95%; distributable amount: ¥431.5 billion
Financial targets
Consolidated capital adequacy ratio15% or higher (actual: 21.95%)
Distributable amount¥200.0 billion or higher (actual: ¥431.5 billion)
Number of employees
Number of personnel assigned
Revenue-related divisions334 people
Year on year14 people
Of which: lending front-office division
73 people
Year on year9
Capital expenditures
¥100 100 million near-term investment allocation for growth strategy investments
Annual Dividend
General ordinary investment dividend
¥3,000 per unit
Specified ordinary investment dividend
¥1,500 per unit
Preferred investment dividend
¥6,500 per unit
Interim DividendNo interim dividend
Acquisition of treasury shares
Treasury preferred investments
Total number acquired10,000 units (maximum)
Acquisition price¥1 billion (maximum)
Acquisition period30 July 2026–29 January 2027
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Ordinary income | ¥561 100 million (YoY -4.1%) |
| Net income | ¥430 100 million (YoY +1.3%) |
| Full-year earnings forecast | Consolidated Ordinary income ¥610 100 million / Profit attributable to owners of the parent ¥440 100 million / Standalone Ordinary income ¥580 100 million / Net income for the current fiscal year ¥420 100 million |
| Breakdown of Factors Affecting the Change | Factors Net interest income, etc. / Amount ¥-13 100 million, Factors Non-interest income / Amount ¥19 100 million, Factors Expenses / Amount ¥-30 100 million, Factors Net interest income / Amount ¥296 100 million, Factors Bond portfolio maintenance / Amount ¥-316 100 million, Factors Human resources, digital-related investments, etc. / Amount ¥-4 100 million, Factors Infrastructure costs, etc. / Amount ¥-26 100 million, Factors Group Companies / Amount ¥13 100 million |
| Key KPIs | Indicator name Consolidated capital adequacy ratio (domestic standards) / Value 21.95 ％ / Year on year against the same period last year -1.45 ％, Indicator name Net valuation difference on securities after hedging / Value ¥-1,629 100 million / Year on year against the same period last year ¥995 100 million, Indicator name Loan balance / Value ¥122,345 100 million / Year on year against the same period last year ¥29,474 100 million, Indicator name Non-performing loan ratio / Value 0.17 ％ / Year on year against the same period last year -0.05 ％, Indicator name Total interest spread / Value 0.15 ％ / Year on year against the same period last year 0.06 ％, Indicator name ROE (based on net income) / Value 3.2 ％ / Year on year against the same period last year 0.47 ％ |
| Number of employees | Number of personnel assigned Revenue-related divisions 334 people / Year on year 14 people / Of which: lending front-office division 73 people |
| Assumptions Underlying the Business Outlook | The company refers to higher funding costs, but the numerical assumptions are not disclosed |
| Medium-term management plan targets | Plan name SCB Strategy 2025 / Target fiscal year Fiscal year ending March 2028 (final year of the medium-term plan) / Profit attributable to owners of the parent Approximately ¥45.0 billion / Consolidated capital adequacy ratio 15% or higher / Distributable amount ¥200 billion or more / Actual results Net income attributable to owners of the parent: ¥43.0 billion; consolidated capital adequacy ratio: 21.95%; distributable amount: ¥431.5 billion |
| Financial targets | Consolidated capital adequacy ratio 15% or higher (actual: 21.95%) / Distributable amount ¥200.0 billion or higher (actual: ¥431.5 billion) |
| Annual Dividend | General ordinary investment dividend ¥3,000 per unit / Specified ordinary investment dividend ¥1,500 per unit / Preferred investment dividend ¥6,500 per unit / Interim Dividend No interim dividend |
| Acquisition of treasury shares | Total number acquired 10,000 units (maximum) / Acquisition price ¥1 billion (maximum) / Acquisition period 30 July 2026–29 January 2027 / Subject Treasury preferred investments |
| Capital expenditures | ¥100 100 million (near-term investment allocation for growth strategy investments) |
| New initiatives | Established a dedicated team for growth strategy investments in April 2026, Set a near-term investment allocation of ¥10.0 billion for growth strategy investments, Established a dedicated DX and AI strategy team in April 2026, Promoting group-wide DX, starting with the introduction of a RAG chatbot, Acquisition and cancellation of part of the treasury preferred investments, Revision of the basic policy on profit allocation |
Items this document does not state (16)
Net SalesOperating profitGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company states that investments in foreign-currency-denominated bonds and other instruments, promotion of lending to business corporations, portfolio reviews, and maintenance of bonds with deteriorating profitability contributed to improvements in earnings and valuation differences. For the fiscal year ending March 2027, it plans to strengthen its stable earnings base over the medium to long term in anticipation of higher funding costs.
How to read this page
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