Credit Saison (8253): FY2025 Results Summary — Business Profit Tops 100.0 Billion Yen One Year Early

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

Credit Saison reported FY25 net revenue of 472.7 billion yen (111.8% year on year) and consolidated business profit of 101.9 billion yen (108.9%). The materials state that the company achieved 100.0 billion yen in consolidated business profit one year ahead of schedule, and describe the result as record-high profits for two consecutive years. Profit attributable to owners of parent was 61.7 billion yen (93.0%), which the company attributes to losses recognized from one-off factors. For FY26 the company plans consolidated business profit of 110.0 billion yen.

Note on fiscal-year labels: the presentation uses “FY” for fiscal years, and its FY25 full-year column is labeled 25/4-26/3. The deck is titled “Financial Results Briefing of FY2025,” dated May 15, 2026 and revised June 5, 2026; the cover states that, following the partial correction of the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under IFRS)” released on June 5, 2026, certain portions of the May 15, 2026 briefing materials were revised, with corrected sections indicated by underlines.

Consolidated Results (Full-Year Actual)

The company describes FY25 as increased revenue and increased business profit due to performance growth at the non-consolidated entity and Group companies, with record-high business profit achieved at the non-consolidated entity and Saison Fundex, etc., and the domestic business performing strongly, centered on the Payment Business and Finance Business. It states that while the core business progressed steadily, profit decreased due to the recognition of losses from one-off factors: losses related to the sale of shares of affiliated companies recorded in the first half, as well as losses associated with the withdrawal from the amusement business of Concerto Co., Ltd. ROE was 9.4% in FY24 (results) and 8.4% in FY25.

Item (billion yen)	FY24	FY25	YoY
Net revenue (consolidated)	422.8	472.7	111.8%
Business profit (consolidated)	93.6	101.9	108.9%
Profit attributable to owners of parent	66.3	61.7	93.0%
Operating revenue (non-consolidated)	310.0	343.8	110.9%
Operating profit (non-consolidated)	47.1	55.5	117.7%
Ordinary profit (non-consolidated)	54.7	62.0	113.3%
Profit (non-consolidated)	52.6	54.8	104.2%

Segment Results

All domestic segments grew business profit in FY25, while the Global segment swung to a business loss. The materials note that, from FY25-1Q, due to organizational restructuring implemented in June 2025, the rent guarantee business previously included in the “Payment Business” has been reclassified to the “Finance Business,” and FY24 figures have been restated accordingly. In addition, from FY26 the “Entertainment Business” is scheduled to be abolished and consolidated into the “Payment Business,” so FY24-25 are presented on a simplified basis as the new “Payment Business,” combining the former Payment Business and former Entertainment Business.

Segment (billion yen)	Net revenue FY24	Net revenue FY25	YoY	Business profit FY24	Business profit FY25	YoY
Payment	259.4	284.2	109.5%	31.4	33.2	105.5%
Lease	13.3	14.7	110.8%	4.1	4.6	113.6%
Finance	72.5	82.7	114.0%	38.9	47.3	121.5%
Real estate related	28.2	31.2	110.5%	16.2	19.2	118.2%
Global	51.5	62.4	121.2%	3.3	-1.4	–
Total	425.2	475.4	111.8%	94.1	103.0	109.4%
Intersegment transactions	-2.3	-2.6	–	-0.5	-1.0	–
Consolidated	422.8	472.7	111.8%	93.6	101.9	108.9%
[Reference] Former Payment Business	252.8	277.2	109.7%	30.0	30.6	101.9%
[Reference] Former Entertainment Business	6.6	7.0	105.4%	1.4	2.5	182.3%

By segment, the company explains that Payment profit increased year on year due to growth in shopping transaction volume and card shopping revenue mainly from revolving credit and installment payments, with quarterly fluctuations; Lease profit increased due to growth in balances through strengthened sales efforts and the impact of fee-rate revisions; Finance profit increased due to higher applied interest rates on floating-rate products and expanded profit contributions from Saison Fundex and Suruga Bank; Real estate related profit increased with the recording of higher-than-expected gains on sale of real estate; and Global profit decreased due to the allowance for doubtful accounts recorded in the Indonesia-related business in 2Q, with 4Q profit narrowing due to the incorporation of future risks (ECL) in Vietnam on an IFRS basis and the recording of valuation losses in the Investment Business. In the Global business, the company exited Thailand in December 2025 and states that discussions are ongoing with local authorities on an exit in Indonesia. Credit Saison India (Kisetsu Saison Finance (India) Pvt. Ltd.) recorded full-year business profit of JPY 5.1 billion, exceeding the planned target of JPY 4.7 billion.

On a Group company basis, consolidated business profit of 101.99 billion yen compared with non-consolidated ordinary profit of 62.06 billion yen, a difference of 39.93 billion yen. Contributions to business profit were 17.76 billion yen from SAISON FUNDEX CORPORATION (+4.76 year on year), 11.44 billion yen from Saison Realty Group (+2.11), 5.17 billion yen from Kisetsu Saison Finance (India) Pvt. Ltd. (-0.12) and 1.97 billion yen from Concerto Inc. (+1.02) among major consolidated subsidiaries, and 7.34 billion yen from Suruga Bank Ltd. (+1.64), 1.10 billion yen from Takashimaya Financial Partners Co., Ltd. (-0.09), 1.05 billion yen from Seven CS Card Service CO., LTD. (+0.18) and 0.49 billion yen from HD SAISON Finance Co., Ltd. (-2.74) among major equity method affiliates.

Credit Risk, Balances and Funding

Consolidated credit cost was 62.3 billion yen for the FY25 full year, a year-on-year change of +19.0 billion yen against 43.3 billion yen in FY24; excluding the Indonesia-related impact the FY25 figure was approximately 57.3 billion yen, with the Indonesia-related impact approximately 5.0 billion yen in 2Q-4Q. The FY26 plan is 59.5 billion yen. Delinquency over 90 days (consolidated) was 1.59% in FY25-4Q, compared with 1.49% in FY24-4Q. The reversal amount of the allowance for interest repayment losses was 2.8 billion yen on a consolidated basis (year on year -0.6 billion yen) and 2.4 billion yen non-consolidated (-0.9 billion yen).

In the Finance business, the guarantee business balance rose to 1,066.8 billion yen at FY25 from 747.4 billion yen at FY24, with a FY26 plan of 1,286.0 billion yen; credit guarantees secured by real estate accounted for 599.5 billion yen at FY25. The real estate finance business balance was 1,110.3 billion yen at FY25 against 1,038.6 billion yen at FY24, with a FY26 plan of 1,156.5 billion yen. On funding, the non-consolidated balance of interest-bearing debt was 3,265.3 billion yen at FY25, the long-term ratio was 81.6% and the fixed-interest borrowing ratio 73.3%, and the company states that a committed credit line, etc. of 650.0 billion yen is secured as a liquidity facility. Credit ratings are R&I A+ (maintained for over 25 years since October 1996) and JCR AA- (newly obtained in January 2025). The FY26 plan incorporates two policy rate hikes for the year: April 2026 at 1.00% and October 2026 at 1.25%.

FY26 Forecast

For FY26 the company forecasts net revenue of 507.5 billion yen (107.3%), consolidated business profit of 110.0 billion yen (107.8%) and profit attributable to owners of parent of 75.5 billion yen (122.3%), citing a rebound from FY25 losses related to the sale of shares of affiliated companies (2.6 billion yen) and losses associated with the withdrawal from the amusement business of Concerto Co., Ltd. (6.3 billion yen). Non-consolidated profit is forecast to fall to 44.0 billion yen (80.3%) on a rebound from FY25 extraordinary income (gains on sales of shares, etc.) of 14.5 billion yen and expected FY26 losses associated with withdrawal from the amusement business of approximately 3.0 billion yen; the materials explain that the timing of recognition of those withdrawal losses differs between the consolidated (IFRS) and non-consolidated (JGAAP) statements.

Item (billion yen)	FY25 Results (A)	FY26 Forecast (B)	Difference (B-A)	YoY
Net revenue (consolidated)	472.7	507.5	34.7	107.3%
Business profit (consolidated)	101.9	110.0	8.0	107.8%
Profit attributable to owners of parent	61.7	75.5	13.7	122.3%
Operating revenue (non-consolidated)	343.8	364.5	20.6	106.0%
Operating profit (non-consolidated)	55.5	59.5	3.9	107.1%
Ordinary profit (non-consolidated)	62.0	66.0	3.9	106.3%
Profit (non-consolidated)	54.8	44.0	-10.8	80.3%

Segment (billion yen)	Net revenue FY25 Results	Net revenue FY26 Forecast	YoY	Business profit FY25 Results	Business profit FY26 Forecast	YoY
Payment	284.2	287.4	101.1%	33.2	33.5	100.9%
Lease	14.7	16.2	109.6%	4.6	4.8	102.8%
Finance	82.7	94.5	114.2%	47.3	48.7	102.9%
Real estate related	31.2	30.0	96.0%	19.2	14.0	72.8%
Global	62.4	80.6	129.1%	-1.4	9.0	–
Consolidated	472.7	507.5	107.3%	101.9	110.0	107.8%
[Reference] Former Payment Business	277.2	287.4	103.7%	30.6	32.0	104.5%
[Reference] Former Entertainment Business	7.0	–	–	2.5	1.5	57.9%

Shareholder Returns

For FY25 the company is expecting a dividend of 130 yen per share, which it says marks a 5th consecutive year of dividend increases and is in line with the initial forecast, with a dividend payout ratio of 30.6% and a total return ratio of 65.4%; share buybacks in FY25 were 20.0 billion yen. For FY26 the year-end dividend is expected to be 160 yen per share, an increase for the sixth consecutive year, with a dividend payout ratio of 30.4%. The company states that treasury shares held will be reduced to around 10% of the total number of shares and any excess portion will, in principle, be canceled; in May 2026 it decided to cancel 13.1% of the total number of issued shares before cancellation. It adds that it will continue to consider share buybacks based on the balance with growth investment. Under the capital policy announced in May 2024, share buybacks totaling 70.0 billion yen were completed by October 1, 2025 (50.0 billion yen of which was completed by April 7, 2025), and the progress rate on reductions of cross-shareholdings was 72.3% as of March 31, 2026.

Item	FY23	FY24	FY25	FY26 forecast
Dividends per share (yen)	105	120	130	160
Dividend payout ratio	23.2%	28.4%	30.6%	30.4%
Total return ratio	100.2%	65.4%	–	–
Share buybacks (billion yen)	–	50.0	20.0	–
Profit attributable to owners of parent (billion yen)	72.9	66.3	61.7	75.5

Medium-Term Plan and Topics

The company positions FY24-25 as a phase of strengthening the earnings base and reducing uncertainty, and FY26, the final year of the current medium-term management plan, as a year of balancing the creation of results with growth investment while sowing the seeds for long-term growth. It says it made steady progress toward achieving ROE above 10% under the next medium-term management plan (from FY27), and will promote efforts toward achieving the plan under a five-segment structure of Payment, Lease, Finance, Real estate related and Global. For the Global business, the materials state that the business profit target of 20 billion yen is aimed to be achieved approximately two years later than the initial plan, with FY26 segment business profit planned at 9 billion yen and Credit Saison India targeting a 10 billion-yen level.

Strategically, the company cites four directions for business transformation against changes in the interest rate environment: transforming the funding structure, expanding non-interest income, a capital-recycling model, and utilizing external capital, including implementing “banking and securities functions, etc.” through alliances and M&A. It is also advancing CSAX (Credit Saison AI Transformation), which moved to Phase 03 in April 2026 to reorganize operations and roles on the premise of AI, and it has been selected as a DX Brand for four consecutive years since 2023.

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.