FY2027 Q1 delivered higher revenue and profit, but net income declined slightly

Ordinary revenue in FY2027 Q1 was ¥17,625 million, up ¥2,294 million year on year. Ordinary profit was ¥2,663 million, also up ¥168 million, while net income attributable to owners of the parent fell ¥7 million to ¥1,734 million. Thus, revenue and ordinary profit improved, but net income did not remain above the prior-year level.

By segment, Banking ordinary revenue was ¥16,266 million, up ¥2,093 million year on year, and segment profit was ¥2,441 million, up ¥78 million. Leasing also recorded higher revenue and profit, with ordinary revenue of ¥1,024 million, up ¥90 million, and segment profit of ¥38 million, up ¥11 million. Banking accounted for the larger increases in both revenue and profit, meaning that the improvement in consolidated results depended largely on Banking.

The company explained that higher interest on loans and interest and dividend income on securities lifted ordinary revenue, while interest on deposits and write-offs of loans also increased. It did not provide a quantitative breakdown by individual factor. The increase in segment profit totals ¥89 million, based on a simple sum, leaving a ¥79 million gap versus the ¥168 million increase in consolidated ordinary profit. The current disclosure does not identify the consolidation adjustments, other income and expenses, taxes or other items corresponding to this gap.

In FY2027 first half, we will assess whether the increase in ordinary profit also flows through to net income, using FY2026 first-half ordinary profit of ¥3,939 million and interim net income attributable to owners of the parent of ¥2,691 million as the benchmarks. In addition to the individual amounts for interest on loans, interest and dividend income on securities, interest on deposits, loan write-offs and income taxes, it will be important to see whether the company discloses a bridge from Banking and Leasing segment profit to consolidated profit.