FY2027 plan ahead of schedule in Q1, with H1 set to test the repeatability of profit growth

Ordinary profit for FY2026 was ¥120,610 million, while net income attributable to owners of the parent was ¥85,428 million. The FY2027 full-year forecasts are ¥149,500 million for ordinary profit and ¥100,000 million for net income. The company's plan calls for ordinary profit to rise 24.0% and net income 17.1% from the previous year's results, making Q1 a relatively strong start against the plan.

Q1 ordinary revenue was ¥151,911 million, up 20.1% year on year. Ordinary profit was ¥41,518 million, up 27.5%, and net income was ¥28,708 million, up 25.7%. The year-on-year increases were ¥25,469 million in ordinary revenue, ¥16,521 million in ordinary expenses and ¥8,948 million in ordinary profit. However, changes in individual items such as interest and dividend income and interest expenses were not provided, so the breakdown of profit growth remains limited.

Dividing ordinary profit and net income by their full-year forecasts gives mechanical progress rates of 27.8% and 28.7%, respectively, at the end of Q1. Using 50% as the H1 reference point, ¥74,750 million in ordinary profit and ¥50,000 million in net income would represent indicative checkpoints. However, quarterly fluctuations are possible in banking due to the interest-rate environment and gains or losses on securities, so the 50% level cannot be treated as a company-stated target.

The full-year forecasts presented with the Q1 results remain unchanged at ¥149,500 million for ordinary profit and ¥100,000 million for net income. Full-year forecasts corresponding to revenue and operating profit have not been disclosed, so progress cannot be assessed on a revenue and operating profit basis as it would be for a general operating company. In FY2027-H1, the focus will be not only on cumulative profit, but also on how far the company breaks down the drivers of changes in ordinary revenue and ordinary expenses into millions of yen, and whether it maintains the full-year plan without changing its H2 assumptions.