FY2027-H1 progress against the full-year plan after the upward revision is in focus

The first quarter, covering April through June 2026, resulted in ordinary revenue of ¥137.903 billion, ordinary profit of ¥49.858 billion and quarterly net income attributable to owners of the parent of ¥34.504 billion. Ordinary profit increased 57.3% and net income 55.2% year on year, indicating not only high profit levels but also strong growth rates. As first-quarter figures, the initial progress against the full-year plan can be considered strong.

At the time of the first-quarter results, the full-year forecasts had been raised to ¥153.5 billion in ordinary profit and ¥105.0 billion in net income. These represent upward revisions of ¥14.5 billion and ¥10.0 billion, respectively, from the forecasts at the time of the FY2025 results, which were ¥139.0 billion and ¥95.0 billion. Dividing the first-quarter results by the full-year forecasts gives progress rates of approximately 32.5% for ordinary profit and 32.9% for net income.

However, quarterly bank results include variable factors such as net interest income, gains and losses related to securities, and credit costs. First-quarter progress therefore cannot be treated as the full-year achievement rate on a straight-line basis. Under a simple 50% benchmark, cumulative second-quarter ordinary profit of ¥76.75 billion and net income of ¥52.5 billion would provide reference points, but the company has not disclosed numerical assumptions for quarterly seasonality or the interest-rate and market environment assumptions incorporated into its full-year forecasts.

At the next results announcement, it will be necessary to examine not only standalone second-quarter ordinary profit and net income, but also changes in the growth rates from the first quarter. In particular, it is important to determine whether the increase in ordinary profit is continuing through highly recurring revenue such as interest on loans, or is dependent on more volatile items such as gains and losses on securities trading. Even if the revised forecasts of ¥153.5 billion and ¥105.0 billion are maintained, it will be necessary to assess how specifically the company explains the profit levels required over the remainder of the period.