First-quarter earnings declined, but full-year net income forecast raised to ¥17.0 billion

Ordinary income for the first quarter of the fiscal year ending March 2027 was ¥28.485 billion, up ¥6.781 billion, or 31.2%, from ¥21.704 billion in the same period a year earlier. Ordinary profit, however, fell ¥383 million, or 10.2%, to ¥3.380 billion from ¥3.763 billion, while profit attributable to owners of the parent fell ¥347 million, or 12.4%, to ¥2.442 billion from ¥2.789 billion. Because revenue increased while earnings declined, the next interim period should be assessed not simply for further revenue growth but for whether the additional revenue is converted into profit.

The full-year net income forecast at the end of the first quarter was ¥15.0 billion, but it was raised by ¥2.0 billion, or 13.3%, to ¥17.0 billion on 25 September 2026. First-quarter net income of ¥2.442 billion represents 14.4% of the revised full-year forecast, but this ratio alone cannot determine whether the company is on track, as financial institutions’ earnings fluctuate during the year through interest income, loan-loss provisions and gains or losses on bond sales. As a practical benchmark for measuring progress against the revised forecast, interim results should be checked to see whether they exceed ¥8.5 billion and whether they surpass the ¥5.674 billion recorded in the same period a year earlier.

The dividend forecast was also revised from ¥44 to ¥50 annually on a post-stock-split basis, while the year-end dividend forecast was raised from ¥22 to ¥28. The previous fiscal year’s annual dividend of ¥144 was paid before the 4-for-1 stock split effective 1 April 2026 and equates to ¥36 on a post-split basis, so a simple comparison with the ¥50 forecast should be avoided. At the next results announcement, it will be important to confirm whether both the ¥17.0 billion earnings forecast and the ¥50 annual dividend forecast are maintained, and which of interest income, credit costs and gains or losses on securities supported the dividend increase.

The summary of the earnings forecast revision provided does not include a quantitative bridge explaining the ¥2.0 billion increase in the net income forecast. Accordingly, it will be important to see whether the interim results disclose the sources of profit supporting the revision by presenting ordinary income, ordinary expenses, ordinary profit and provision for loan losses alongside the year-earlier figures.