Yamaguchi Financial Group (8418) Q2 2026 earnings summary

Executive summary

• Ordinary income rose 6.3% year-over-year to ¥113,577 million for the six months ended September 30, 2025, with ordinary profit up 8.4% to ¥26,732 million and profit attributable to owners of parent up 33.1% to ¥21,527 million.

• Comprehensive income surged to ¥50,560 million from a loss of ¥2,244 million in the prior year period, driven by significant gains in valuation differences on available-for-sale securities and hedges.

Financial highlights

• Net interest income declined by ¥9,339 million year-over-year, but interest on loans and discounts increased by ¥2,705 million.

• Net fees and commissions fell by ¥927 million, while net other business profit improved by ¥8,804 million, though still negative.

• Gains (losses) on bonds were negative ¥7,896 million, a ¥5,470 million improvement from the previous year.

• ROE improved to 6.69% from 4.98% year-over-year; OHR improved to 55.52% from 56.59%.

• Capital adequacy ratio (consolidated) increased to 13.57% from 12.85% as of March 31, 2025.

Outlook and guidance

• Full-year forecast for ordinary profit is ¥45,000 million (up 14.2% year-over-year), and profit attributable to owners of parent is projected at ¥31,500 million (up 10.9%), with basic EPS forecast at ¥149.25.

• Dividend forecast for the fiscal year ending March 31, 2026, is ¥64.00 per share, up from ¥60.00 in the previous year.