First-quarter progress reached approximately 27% of the full-year forecast, but the interim results will be the next key inflection point

Ordinary profit for the first quarter of the fiscal year ending March 2027 was ¥20.382 billion, while net profit attributable to owners of the parent was ¥14.128 billion. The full-year forecasts are ¥74.5 billion for ordinary profit and ¥51.0 billion for net profit attributable to owners of the parent, resulting in first-quarter progress rates of 27.4% and 27.7%, respectively. As 3 months represents one-quarter of the full year, these figures exceed 25% on a simple time-allocation basis.

However, the full-year forecast cannot be judged likely to be exceeded based on these progress rates alone. In banking, quarterly profit may fluctuate depending on the timing of net interest income, securities investments, gains and losses on bond transactions, credit costs and other items, but this disclosure does not indicate seasonality or the allocation of profit between the first and second halves. For the cumulative second quarter, we will assess how the company views its progress against mechanical 50% benchmarks of ¥37.250 billion for ordinary profit and ¥25.5 billion for net profit.

Year on year, ordinary income was ¥74.189 billion, up 39.0%, ordinary profit was ¥20.382 billion, up 22.5%, and net profit was ¥14.128 billion, up 21.1%. Ordinary profit increased by ¥3.742 billion and net profit by ¥2.457 billion from the same period of the previous year, but the company has provided only limited quantitative explanation of how these increases will carry through to the remaining period of the full-year forecast.

The first-quarter results contained no revisions to the most recent forecasts, and the full-year forecasts were left unchanged. Accordingly, in the second quarter it will be necessary to confirm not only whether cumulative profit increased, but also whether the increase in ordinary profit came from recurring income such as interest on loans or included non-recurring items such as gains on bond sales. The cumulative second-quarter profit, the company's own assessment against the full-year forecasts, and whether the forecasts are revised will be the key factors in the assessment.