Juroku Financial Group (7380): FY2025 Results Summary — Record Profits and a 7th Straight Dividend Increase

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

Juroku Financial Group (Juroku FG), the Gifu-based holding company of Juroku Bank, reported record results for FY2025 (the fiscal year ended March 31, 2026). Consolidated core gross operating profit rose by 10.3 billion yen YoY to 87.1 billion yen, and consolidated core net operating profit, ordinary profit and net income attributable to owners of the parent all reached record highs. Net income attributable to owners of the parent came to 27.3 billion yen and consolidated ROE was 6.16%, achieving the Medium-Term Management Plan target of 6% or above ahead of schedule. The annual dividend for FY2025 was 48 yen on a post-share-split basis, the 7th consecutive increase.

Consolidated Results (Full-Year Actual)

Consolidated core gross operating profit was up 10.3 billion yen YoY to 87.1 billion yen on rises in net interest income and fees and commissions. Expenses rose by 2.4 billion yen YoY to 47.1 billion yen, as personnel expenses increased by 600 million yen on higher retirement benefits and salary hikes and non-personnel expenses increased by 1.7 billion yen on App-related PR expenses and strategic DX investments. Consolidated core net operating profit was up 7.8 billion yen YoY to 39.9 billion yen, ordinary profit up 11.5 billion yen to 42.7 billion yen, and net income attributable to owners of the parent up 6.5 billion yen to 27.3 billion yen, all record highs. The company recorded an impairment loss of 2.8 billion yen as an extraordinary loss.

Juroku FG consolidated (Unit: 0.1 billion yen)	25/3	26/3	YoY	Change rate
Consolidated core gross operating profit	768	871	103	13.3%
Net interest income	544	621	77	14.2%
Fees and Commissions	175	203	28	16.3%
Other operating profit (excluding profit/loss on JGBs and other debt securities)	49	45	– 4	– 7.4%
Expenses	447	471	24	5.4%
Personnel expenses	232	238	6	2.4%
Non-personnel expenses	183	200	17	9.1%
Consolidated core net operating profit	321	399	78	24.2%
Profit/loss on JGBs and other debt securities	– 155	– 267	– 112	–
Consolidated net business profit	165	131	– 34	– 20.3%
Credit costs	21	25	4	16.6%
Profit/loss on equities	158	315	157	99.1%
Ordinary profit	312	427	115	36.9%
Net income attributable to owners of the parent company	208	273	65	31.3%
Capital adequacy ratio (%)	11.23	11.53	0.30	–
Consolidated ROE (%)	4.81	6.16	1.35	–

Juroku Bank Non-Consolidated Results

At Juroku Bank, core net operating profit increased by 7.4 billion yen YoY to 35.8 billion yen, driven by higher net interest income from increased interest on loans and securities as well as growth in fees and commissions. Core net operating profit, ordinary profit and net income all reached record highs: ordinary profit was up 11.7 billion yen YoY to 39.6 billion yen as higher profit on equities more than offset widened losses on JGBs and other debt securities, and net income was up 5 billion yen YoY to 25.9 billion yen. Profit from customer services rose by 4.5 billion yen YoY to 17.8 billion yen. Net interest income climbed by 7.6 billion yen YoY to 63.0 billion yen, and the average yield on JPY loans rose by 0.226 percentage points YoY to 1.076% on an average balance of JPY loans of 5,025.3 billion yen.

Juroku Bank non-consolidated (Unit: 0.1 billion yen)	25/3	26/3	YoY	Change rate
Core gross operating profit	665	767	102	15.3%
Net interest income	554	630	76	13.7%
Fees and Commissions	115	134	19	16.9%
Expenses	381	409	28	7.4%
Personnel expenses	178	185	7	3.6%
Non-personnel expenses	174	194	20	11.1%
Core net operating profit	284	358	74	25.9%
Profit/loss on JGBs and other debt securities	– 155	– 268	– 113	–
Net business profit	128	89	– 39	– 29.9%
Credit costs	10	18	8	74.3%
Profit/loss on equities	150	315	165	109.5%
Ordinary profit	279	396	117	41.7%
Net income	209	259	50	24.1%
Capital adequacy ratio (%)	10.02	10.09	0.07	–
Profit from Customer Services	133	178	45	–

Group Company Results

Net income of Group companies excluding Juroku Bank that contributed to consolidated results totaled 2.511 billion yen, up 1.054 billion yen YoY. Four companies established since 2021 — Juroku Densan Digital Services, NOBUNAGA Succession, NOBUNAGA Capital Village and Kanda Machiokoshi — boosted profits, increasing their contribution to Group company earnings. For the 10 Group companies excluding Juroku Bank, core gross operating profit rose 1.3% YoY to 12,593 million yen while ordinary profit fell 11.6% YoY to 4,238 million yen.

Company (Unit: Million yen)	Core gross operating profit 25/3	Core gross operating profit 26/3	Net income contributed to consolidated results 25/3	Net income contributed to consolidated results 26/3
Juroku Research Institute	335	299	45	19
Juroku TT Securities	3,116	2,857	487	366
Juroku Card	2,170	2,199	30	257
Juroku Lease	2,384	2,406	– 129	672
Juroku Densan Digital Services	621	665	– 67	28
NOBUNAGA Succession	383	971	57	227
NOBUNAGA Capital Village	54	165	– 6	49
Kanda Machiokoshi	73	90	– 30	13
Juroku Business Service	392	399	8	4
Juroku Credit Guarantee	2,898	2,538	1,063	871
Total of 10 Group companies (excl. Juroku Bank)	12,431	12,593	1,457	2,511

Balance Sheet, Credit Costs and Soundness

The year-end loan balance at Juroku Bank increased by 83.1 billion yen YoY to 5,115.8 billion yen, driven by increases in corporate/housing loans and public sector loans, while the year-end deposit balance stood at 64,246 (0.1 billion yen). The loan-deposit spread as of Mar. 2026 on a quarterly basis improved by 0.110 percentage points YoY to 0.931%. Credit costs at the Bank increased by 0.8 billion yen YoY to 1.8 billion yen but are still at a low level, and the ratio of non-performing loans to total claims outstanding rose by 0.06 percentage points YoY to 1.20%, remaining at a low level. Valuation gains and losses on securities rose by 38.5 billion yen YoY to 78.2 billion yen as valuation gains on stocks increased amid strong market conditions, while valuation losses on bonds decreased due to JPY bond replacement; the average yield on JPY bonds rose by 0.286 percentage points YoY to 0.551%. The capital adequacy ratio remained at a healthy level of 11.53% for Juroku FG consolidated and 10.09% for Juroku Bank non-consolidated. The ratio of cross-shareholdings to consolidated net assets came to 15.7% at the end of Mar. 2026, against a target of reducing the ratio to below 15% by the end of Mar. 2028.

FY2026 Business Projections

Juroku FG consolidated business projections for FY2026 call for ordinary profit of 41.0 billion yen and net income attributable to owners of the parent of 28.0 billion yen. The projections assume a policy interest rate of 0.75% (no change), with core business profit expected to rise by 4.1 billion yen YoY.

Entity	Item (0.1 billion yen)	26/3 Results	27/3 Forecast
Juroku FG consolidated	Consolidated Core Gross Operating Profit	871	920
Juroku FG consolidated	Consolidated Core Net Operating Profit	399	440
Juroku FG consolidated	Ordinary Profit	427	410
Juroku FG consolidated	Net income attributable to owners of the parent company	273	280
Juroku Bank non-consolidated	Core Net Operating Profit	358	400
Juroku Bank non-consolidated	Net business profit	89	310
Juroku Bank non-consolidated	Ordinary Profit	396	385
Juroku Bank non-consolidated	Net Income	259	265

Shareholder Returns

Juroku FG’s basic policy is to continuously pay stable dividends while striving to further improve its financial robustness amidst diversifying risks surrounding financial transactions; in view of business management conditions and income level, the Group determines details of shareholder returns with the aim of achieving a dividend payout ratio of at least 30%. For FY2025, annual dividends totaled 48 yen on a post-share-split basis, marking the 7th consecutive dividend increase, with a payout ratio of 31.3%. Dividends amounted to 8,548 million yen and share buybacks to 2,999 million yen — the 5th consecutive term of buybacks since establishment — resulting in a total shareholder return ratio of 42.1%. The FY2026 annual dividend is expected to be 50 yen, up 2 yen YoY, aiming for an 8th consecutive term of dividend growth. The company also implemented a 5-for-1 share split on Apr. 1, 2026 to improve share liquidity and broaden the investor base, and revised shareholding requirements to expand eligibility for its shareholder benefits program.

Item (Yen)	24/3	25/3	26/3	27/3 (Forecast)
Annual dividend	32 yen	36 yen	48 yen	50 yen
Interim dividends	14 yen	16 yen	20 yen	25 yen
Year-end dividends	18 yen	20 yen	28 yen	25 yen

*Annual dividend reflecting the Apr. 1, 2026 share split. Dividends were paid by Juroku Bank up until the interim dividends for FY2021.

Medium-Term Management Plan and Topics

With the Group’s profitability improving, all four numerical targets in the 2nd Medium-Term Management Plan are on track, and because they are likely to be achieved ahead of schedule, revisions to the targets are being considered. As of 2026/3, consolidated net income was 27.3 billion yen against a 2028/3 target of 28 billion yen or above, consolidated ROE was 6.16% against a target of 6% or above, adjusted OHR was 54.13% against a target in the 50% range, and the consolidated capital adequacy ratio was 11.53% against a target of 11% or above. The Long-Term Vision targets for 2033/3 are consolidated net income of 40 billion yen or above and a consolidated capital adequacy ratio of 12% or above.

Topics highlighted in the materials include the acceleration of human capital investment — the mandatory retirement age was extended to 65 and the regional banking industry’s first Flexible Retirement Age System up to Age 65 was introduced, and Juroku Bank appointed its first female Representative Director who began her career at the Bank, the first such case among regional banks in the Tokai area — and the introduction of a Chief Officer System in June 2026 to accelerate decision-making and strengthen governance. The Juroku App, launched in Apr. 2025, acquired over 500,000 users in 11 months, and the company was selected for the Climate Change A List, the highest rating in the CDP Climate Change 2025 assessment.

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.