Yamaguchi Financial Group (8418) Q4 2025 earnings summary

Executive summary

• Ordinary income rose 15.5% year-over-year to ¥213.4 billion, with ordinary profit up 40.6% to ¥52.4 billion and profit attributable to owners of parent up 40.2% to ¥35.3 billion.

• Comprehensive income turned negative at ¥(12.4) billion, mainly due to large valuation losses on securities.

• All three subsidiary banks posted higher ordinary income and profits, with The Yamaguchi Bank leading in profit growth.

Financial highlights

• Net interest income increased by ¥5.1 billion year-over-year, driven by higher interest on loans and securities.

• Net fees and commissions slightly decreased, while net trading income and other business profit declined.

• Credit-related expenses decreased by ¥2.9 billion, supporting profit growth.

• ROE improved to 5.55% from 3.98% year-over-year.

• Adjusted OHR (excluding one-time items) improved to 56.18% from 60.73%.

Outlook and guidance

• For FY2026, ordinary profit is forecast at ¥45.0 billion (down 14.2% year-over-year), and profit attributable to owners of parent at ¥31.5 billion (down 10.9%).

• Dividend per share is projected to rise to ¥64.00 for FY2026.