Tokyo Kiraboshi Financial Group (7173): FY2025 Results Summary — Ordinary Profit Up 45.1% on Higher Loan Interest Income

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

Note: The source materials label fiscal years as 2025/3 and 2026/3 (the fiscal year ended March 31, 2026); this site classifies the most recently completed fiscal year as FY2025.

Tokyo Kiraboshi Financial Group reported consolidated ordinary profit of ¥60.4 billion for the fiscal year ended March 31, 2026, an increase of 45.1% year on year (¥41.6 billion → ¥60.4 billion), and profit attributable to owners of parent of ¥42.3 billion, up 35.0% (¥31.3 billion → ¥42.3 billion). At Kiraboshi Bank (non-consolidated), ordinary profit rose 40.5% (¥40.2 billion → ¥56.5 billion) and net income rose 31.1% (¥30.2 billion → ¥39.6 billion). The company notes that net income for both the Group and the Bank includes ¥7.4 billion in gain on sale of shares to be allocated for redemption of preferred shares, described as a special factor.

Consolidated Results (Full-Year Actual)

Consolidated ordinary profit exceeded the 2026/3 forecast with a rate of progress of 128.6%, and profit attributable to owners of parent reached 128.3% of the forecast.

Item (¥100 million)	2025/3 (Actual)	2026/3 (Actual)	YoY	2026/3 (Forecast)	Rate of progress
Ordinary profit	416	604	+188	470	128.6%
Profit attributable to owners of parent	313	423	+109	330	128.3%

Kiraboshi Bank (Non-Consolidated) Results

At Kiraboshi Bank, gross core business profit rose to ¥103.4 billion, driven by interest on loans and discounts, which increased by ¥12.6 billion year on year due to an increase in loan balances resulting from promotion of transactions for main bank relationship building and a rise in loan yields that partly reflected the impact of the policy rate hike. Net interest on deposits, loans and discounts increased by ¥1.5 billion year on year. Gains (losses) on bonds, stocks and other securities improved by ¥9.9 billion year on year: while realized losses of ¥(9.6) billion were posted in relation to super long-term bonds and other securities, gains on sale of shares held for pure investment and cross-held shares increased.

Item (¥100 million)	2025/3 (Actual)	2026/3 (Actual)	YoY
Gross core business profit	948	1,034	+85
Net interest income	852	905	+53
Of which, interest on loans and discounts	715	842	+126
Expenses	(549)	(571)	(21)
Net core business income	399	463	+64
Credit-related costs	(29)	(38)	(9)
Gains (losses) on stocks and other securities	99	218	+119
Ordinary profit	402	565	+163
Net income	302	396	+94

Loans, Deposits and Assets under Management

The combined loan balance (Kiraboshi Bank + UI Bank) increased by ¥274.1 billion year on year to ¥5,283.1 billion (Kiraboshi Bank ¥5,014.5 billion, UI Bank ¥268.6 billion; balances shown in the materials as 52,831, 50,145 and 2,686 in ¥100 million). Kiraboshi Bank’s loan yield rose to 1.70% and the loan-deposit yield difference widened to 1.41%. The Group’s combined deposit balance (Kiraboshi Bank + UI Bank) increased by ¥48.9 billion to ¥6,212.0 billion, mainly in Kiraboshi Bank’s corporate deposits and UI Bank’s personal deposits. The combined balance of assets under management (Kiraboshi Bank + KLD Securities) increased by ¥218.0 billion to ¥929.3 billion, due to an increase in investment trusts and promotion of stock transfers from other firms. The balance of trust assets rose by ¥33.6 billion to ¥179.2 billion.

Asset Quality and Capital Ratio

Credit-related costs at Kiraboshi Bank were ¥3.8 billion (shown as 38 in ¥100 million), up ¥0.9 billion year on year due partly to credit deterioration at certain major customers, but were kept at low levels compared with the fiscal year target of ¥5.0 billion. Problem assets subject to disclosure under the Financial Reconstruction Act declined to ¥79.4 billion (794 in ¥100 million) and the problem asset ratio improved from 1.68% to 1.57%. The Group’s consolidated capital ratio rose from 8.74% to 9.54%, as equity capital increased to ¥385.6 billion (3,856 in ¥100 million) through accumulation of profits.

Indicator	2025/3	2026/3
Problem assets subject to disclosure (¥100 million, Kiraboshi Bank)	836	794
Problem asset ratio (Kiraboshi Bank)	1.68%	1.57%
Credit-related costs (¥100 million, Kiraboshi Bank)	29	38
Capital ratio (FG consolidated)	8.74%	9.54%
Core OHR (Kiraboshi Bank)	57.9%	55.2%
ROE (FG consolidated)	8.5%	10.6%

Although expenses increased, the increase in gross core business profit contributed to a 2.7%pt year-on-year improvement in core OHR, to 55.2%. ROE rose by 2.1%pt to 10.6%, driven by the substantial increase in the Group’s net income.

Shareholder Returns

The annual dividend per share for the fiscal year ended March 31, 2026 increased for the fifth consecutive year, to ¥170 (second quarter ¥85 and fiscal year-end ¥85), up from ¥160 in 2025/3 and ¥145 in 2024/3. A forecast for the next fiscal year’s dividend cannot be confirmed from the materials.

Group Companies and UI Bank

Group company profit (excluding Kiraboshi Bank) increased by ¥1.95 billion year on year to ¥3.42 billion, with a positive contribution from the Digital Business achieving profitability, exceeding the FY2026/3 annual target of ¥3.0 billion. By business, the sum of the four businesses of ¥3.42 billion (34.2 in ¥100 million) comprised Financial 22.9, Solutions 5.9, Promotion/Overseas 2.7 and Digital 2.5. At UI Bank, gross core business profit rose from ¥2.4 billion to ¥3.9 billion (24 → 39 in ¥100 million), and both ordinary profit and net income turned positive at ¥0.1 billion (from ¥(1.4) billion in the previous year). UI Bank’s deposit balance grew to ¥805.9 billion (8,059 in ¥100 million) and its loan balance to ¥268.6 billion (2,686 in ¥100 million), comprising mortgage loans of 1,698, investment real estate loans of 922 and unsecured loans of 65 (in ¥100 million). Profit from customer business at Kiraboshi Bank increased by ¥1.0 billion to ¥27.0 billion (270 in ¥100 million), mainly due to the increase in loan balance and expansion in the loan-deposit yield difference.

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.