Q1 was a strong start, generating one-third of the full-year plan, but confirmation of H1 achievement is needed

Ordinary revenue for Q1 of FY2027 was ¥69,662 million, ordinary income was ¥25,237 million, and net income attributable to owners of the parent was ¥17,685 million. Year on year, ordinary revenue increased 20.6%, ordinary income increased 44.1%, and net income increased 38.3%, representing substantial profit growth based on earnings levels alone.

At the time of the Q1 results, the full-year forecasts were ¥78,000 million in ordinary income and ¥53,000 million in net income attributable to owners of the parent. Dividing Q1 results by the full-year forecasts gives progress of 32.4% for ordinary income and 33.4% for net income. Actual results for FY2026 were ¥61,115 million in ordinary income and ¥42,103 million in net income, so the company is targeting an ambitious 27.6% year-on-year increase in ordinary income and a 25.8% increase in net income.

The company forecasts interim ordinary income of ¥38,800 million and interim net income attributable to owners of the parent of ¥26,400 million. Q1 results represent 65.0% of the interim ordinary income forecast and 67.0% of the interim net income forecast, putting performance ahead of the first-half plan. However, bank earnings can fluctuate from quarter to quarter depending on the timing of interest income, gains and losses related to securities, and credit costs, so it would be premature to assess achievement of the full-year forecasts based solely on a simple annualisation of Q1 results.

At the next interim results announcement, we will confirm whether the interim forecasts of ¥38,800 million in ordinary income and ¥26,400 million in net income were achieved, and whether the factors driving Q1 profit growth remained in the second quarter. The results information provided does not disclose a full-year forecast for ordinary revenue or an equivalent sales figure, nor a forecast for operating income, so progress in earnings must be assessed primarily through ordinary income and net income.