ACOM (8572): FY2025 Results Summary — Operating Profit Up 71.4% on Lower Interest-Repayment Provision

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: ACOM’s presentation covers the “Fiscal Year Ended March 2026” and labels it “FY March 2026”; japan-equity.com classifies this most recently completed fiscal year as FY2025. Figures below keep the company’s own labels. Operating revenue increased by 6.3% YoY to ¥337.7 bn, supported by business expansion and the impact of yen depreciation. Operating profit increased by 71.4% YoY to ¥100.3 bn, due to a large decrease in provision for loss on interest repayment, and profit attributable to owners of parent surged by 147.9% YoY to ¥79.6 bn. Consolidated receivables outstanding increased by 7.3% YoY to ¥2,911.4 bn.

Consolidated Results (Full-Year Actual)

ACOM describes the year as steady business expansion, driven by a favorable trend in domestic borrowings by existing customers and the impact of a weaker yen and a stronger baht. Operating expenses fell 8.4% YoY to ¥237,315 million, as provision for loss on interest repayment dropped 83.6% YoY to ¥6,573 million, while provision for bad debts rose 3.6% YoY to ¥109,434 million and financial expenses rose 27.4% YoY to ¥7,323 million. Ordinary profit was ¥100,513 million (+70.6% YoY) and profit was ¥84,888 million (+132.1% YoY).

Item (Millions of yen, %)	FY March 2026 Results	YoY
Operating Revenue	337,709	6.3
Loan and Credit Card Business	181,889	7.3
Guarantee Business	81,039	6.2
Overseas Financial Business	67,526	3.2
Operating Expenses	237,315	-8.4
Financial Expenses	7,323	27.4
Provision for Bad Debts	109,434	3.6
Provision for Loss on Interest Repayment	6,573	-83.6
Other Operating Expenses	113,982	5.8
Operating Profit	100,394	71.4
Ordinary Profit	100,513	70.6
Profit Before Income Taxes	100,746	71.8
Profit	84,888	132.1
Profit Attributable to Owners of Parent	79,635	147.9

Segment Results

In the Loan and Credit Card (L.C.) business, receivables outstanding increased by 7.3% YoY to ¥1,151.7 bn, reflecting strong usage from existing customers, and operating profit surged by 281.9% YoY to ¥53.5 bn, mainly due to a decrease in provision for loss on interest repayment. In the Guarantee business, guaranteed receivables increased by 7.7% YoY to ¥1,469.0 bn, reflecting strong demand from new and existing customers, while operating profit decreased by 5.9% YoY to ¥22.2 bn due to an increase in provision for bad debts. In the Overseas Financial business, receivables outstanding on a yen basis increased by 5.0% YoY to ¥280.0 bn, reflecting the impact of yen depreciation, and operating profit improved by 18.1% YoY to ¥22.8 bn.

Segment	Receivables Outstanding	YoY	Operating Revenue	YoY	Operating Profit	YoY
Consolidated	¥2,911.4bn	+7.3%	¥337.7bn	+6.3%	¥100.3bn	+71.4%
L.C. Business	¥1,151.7bn	+7.3%	¥181.8bn	+7.3%	¥53.5bn	+281.9%
Guarantee Business	¥1,469.0bn	+7.7%	¥81.0bn	+6.2%	¥22.2bn	-5.9%
Overseas Financial Business	¥280.0bn	+5.0%	¥67.5bn	+3.2%	¥22.8bn	+18.1%

At EASY BUY (Thailand), receivables outstanding on a local-currency basis deteriorated by 2.8% YoY to 55.1 billion baht, operating revenue declined by 3.3% YoY to 14.2 billion baht, and operating profit increased by 10.7% YoY to 5.2 billion baht, mainly due to a decrease in provision for bad debts. In the Guarantee business, ACOM’s guaranteed receivables increased by 7.4% YoY to ¥1,255.6 bn and the number of customer accounts increased by 7.0% YoY to 2,180 thousand on a segment basis.

Interest Repayment and Credit Costs

The number of requests for interest repayment in FY March 2026 declined by 27.1% YoY to 7,000 cases, against the estimate of a decrease of around 20%. The amount of drawdown of provision for loss on interest repayment decreased by 41.6% YoY to ¥13.0 bn, against the estimate of a decrease of around 25%, and after adding ¥6.5 bn the balance of provision for loss on interest repayment totaled ¥41.5 bn. Both figures are expected to decrease by around 25% YoY in FY March 2027.

On credit costs, provision for bad debts on a consolidated basis increased by 3.6% YoY to ¥109.4 bn, while provision for bad debts at EASY BUY decreased by 11.7% YoY to ¥21.9 bn. In the L.C. business at ACOM, the average loan yield increased by 7 bps YoY to 14.92% and the bad debt expense ratio decreased by 15 bps YoY to 3.53%. In the Guarantee business at ACOM, the balance of right to reimbursement totaled ¥62.4 bn (+5.8% YoY) and the bad debt expense ratio decreased by 2 bps YoY to 2.42%. Non-performing loans stood at ¥67.3 bn and the NPL ratio declined to 6.80%, reflecting an improvement in the credit portfolio. Borrowings at ACOM increased by ¥60.5 billion YoY to ¥685.5 bn, and the average interest rate on funds procured during the year increased by 29 bps YoY to 0.92%.

FY March 2027 Forecast

For FY March 2027, operating revenue is expected to increase by 5.4% YoY to ¥356.0 bn, driven by business expansion, while operating profit is expected to decrease by 2.4% YoY to ¥98.0 bn and profit attributable to owners of parent is expected to decrease by 19.9% YoY to ¥63.8 bn. The company notes the revenue plan is +2.2% and the operating profit plan is +4.7% compared to the Mid-term Management Plan. On business scale, consolidated receivables outstanding are targeted at ¥3,099.8 bn (YoY +6.5%), with the L.C. business at ¥1,237.8 bn (YoY +7.5%), the Guarantee business at ¥1,583.1 bn (YoY +7.8%) and the Overseas Financial business at ¥267.9 bn (YoY -4.3%). The number of new customers is targeted at 360,000 (YoY -0.8%) and advertising expenses at ¥17.8 bn (YoY +1.9%).

Item (Millions of yen, %)	FY March 2027 Forecasts	YoY
Operating Revenue	356,000	5.4
Loan and Credit Card Business	191,600	5.3
Guarantee Business	86,000	6.1
Overseas Financial Business	70,400	4.3
Operating Expenses	258,000	8.7
Financial Expenses	11,600	58.4
Provision for Bad Debts	120,000	9.7
Provision for Loss on Interest Repayment	5,200	-20.9
Other Operating Expenses	121,200	6.3
Operating Profit	98,000	-2.4
Ordinary Profit	98,500	-2.0
Profit Before Income Taxes	98,300	-2.4
Profit	68,600	-19.2
Profit Attributable to Owners of Parent	63,800	-19.9

Shareholder Returns

ACOM’s stated basics on capital policy are to achieve sustainable enhancement of corporate value, maintain financial soundness, enhance profitability and firmly maintain stable and continuous dividends to shareholders. The Vision for the Medium-term Management Plan sets a shareholders’ equity ratio of approx. 23%, ROE of approx. 10% and a dividend payout ratio of approx. 50%. As of March 31, 2026, the shareholders’ equity ratio was 23.3% (“Achieved the Goal of 23%”), ROE was 11.6% and the dividend payout ratio was 43.3%. The dividend per share for the year is 22 yen, increased by 2 yen from the previous forecast announced in May 2025; the year-end dividend is subject to approval at the Regular General Meeting of Shareholders scheduled for June 2026. For FY March 2027, an annual dividend of ¥22 is planned with a dividend payout ratio of 54.0%.

Item	FY March 2026	FY March 2027 (Plan)
Dividend per share (annual)	22 yen	¥22
Interim	10 yen	¥11
Year-end	12 yen	¥11
Dividend Payout Ratio	43.3%	54.0%
ROE	11.6%	This cannot be confirmed from the materials.
Shareholders’ Equity Ratio	23.3%	This cannot be confirmed from the materials.

Medium-Term Plan and Topics

Under the Medium-term Management Plan covering FY March 2026 to FY March 2028, ACOM aims for consolidated receivables outstanding of ¥3,279.6 bn in FY March 2028, described as business volume of ¥3.2 trillion and a 1.2-fold increase over the three years of the plan, with the L.C. business at ¥1,314.9 bn (CAGR 7.0%), the Guarantee business at ¥1,696.0 bn (CAGR 7.5%) and the Overseas Financial business at ¥257.5 bn (CAGR -1.2%). Operating revenue is planned at ¥366.5 bn and operating profit at ¥100.4 bn in FY March 2028, aiming to improve operating profit for three consecutive fiscal years. The medium-term policy is “Accelerating Our Growth Cycle to Achieve Our Vision.”

Topics disclosed for the year include a repayment service using “PayPay Money” and the start of BPR (Business Process Re-engineering) in the L.C. business in April 2026; renewed commercials on the theme of “Safety” and “Trust”; and GeNiE Inc., which has formed partnerships with 29 companies and revised its initial plan to around 60 companies within the Medium-term Management Plan, aiming for around 50 alliance partners in FY2027. In the Guarantee business, ACOM has formed partnerships with a company and five banks since April 2025, began a partnership with TOMATO bank in April 2026 and plans to start a partnership with ORIX bank in October. Overseas, receivables outstanding at ACF (Philippines) have been increasing on a local-currency basis, the number of new applications at ACM (Malaysia) grew to around 3.7 times the previous level as of March 31, 2026, and the company aims to expand into one or more new countries during the current Medium-term Management Plan, currently researching Cambodia as its most promising market.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.