JAPAN POST BANK (7182) Q2 2026 earnings summary

Executive summary

• Net income attributable to owners of parent for H1 FY2025 rose by ¥17.5 billion year-over-year to ¥240.3 billion, achieving 51.1% of the full-year forecast of ¥470 billion, with profitability and efficiency targets achieved ahead of schedule.

• Ordinary income increased by ¥143.0 billion year-over-year to ¥1,398.1 billion, driven by higher interest income and fees.

• The bank is entering a profit expansion phase, expecting record high profits for the third consecutive year since listing.

• The next medium-term management plan aims to position the bank as a comprehensive financial platform and leading global market player, with a higher ROE target above 5% and progressive dividends.

Financial highlights

• Net ordinary income for H1 FY2025 was ¥354.0 billion, up ¥32.6 billion year-over-year, with net interest income rising by ¥114.4 billion to ¥567.0 billion and fees and commissions up to ¥98.3 billion.

• Maintained a strong capital adequacy ratio (15.67%) and CET1 ratio (12.43%), both up from March 2025.

• Annual dividend forecast remains at ¥66 per share, with a payout ratio of 50.2%.

• Operating efficiency improved, with OHR at 57.35% and ongoing efforts to reduce it.

• Unrealized losses on available-for-sale securities improved to ¥(740.2) billion, up ¥347.6 billion from March 2025.

Outlook and guidance

• Full-year net income forecast for FY2025 remains unchanged at ¥470 billion, with a full-year net ordinary income forecast of ¥680.0 billion, up 16.3% year-over-year.

• The next medium-term management plan (FY2026–2028) will focus on digital payments, consulting, regional/corporate solutions, market operation/asset management, and targets higher ROE and progressive dividends.

• ROE target will be revised upward from the current 5% or more, with specific figures to be announced.