San ju San Financial Group (7322): FY2025 Results Summary — Record Net Income and a Basic Agreement to Integrate with Aichi Financial Group

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

Note: San ju San Financial Group does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. Amounts stated in the source in oku-yen are rendered in billion yen without changing any digits.

In its consolidated results for the fiscal year ended March 31, 2026 (FY2025), San ju San Financial Group posted ordinary profit of 16.6 billion yen (up 4.9 billion yen year on year) and profit attributable to owners of the parent of 12.3 billion yen (up 3.7 billion yen year on year), both record highs (excluding the gain on negative goodwill recorded in the first year of the integration). Higher net interest income and firm non-interest income contributed, and at subsidiary San ju San Bank on a non-consolidated basis core net business profit also reached a record high. The company also announced that it had signed a basic agreement on a management integration with Aichi Financial Group (disclosed on May 13, 2026).

Consolidated Results (Fiscal Year Ended March 31, 2026, Actual)

On an FG consolidated basis, ordinary profit was 16.6 billion yen (up 4.9 billion yen, or 41.7%, year on year) and profit attributable to owners of the parent was 12.3 billion yen (up 3.7 billion yen, or 42.7%), both record highs (excluding the gain on negative goodwill recorded in the first year of the integration). ROE improved to 5.65% (up 1.53pt year on year), achieving the FY2025 plan under the upwardly revised medium-term management plan. At San ju San Bank on a non-consolidated basis, net interest income increased to 42.7 billion yen (up 6.2 billion yen, or 17.1%), mainly on growth in the average balance of loans and continued improvement in the loan-deposit interest rate spread, and core net business profit, which represents the bank’s underlying earnings power, reached a record high of 18.6 billion yen (up 5.3 billion yen, or 40.1%).

Item	FY Ended Mar 2026 (Actual)	FY Ended Mar 2025 (Actual)	Change
Ordinary profit (FG consolidated)	16.6 billion yen	11.7 billion yen	+4.9 billion yen
Profit attributable to owners of parent (FG consolidated)	12.3 billion yen	8.6 billion yen	+3.7 billion yen
ROE (FG consolidated)	5.65%	4.12%	+1.53pt
Net interest income (San ju San Bank, non-consolidated)	42.7 billion yen	36.5 billion yen	+6.2 billion yen
Core net business profit (San ju San Bank, non-consolidated)	18.6 billion yen	13.3 billion yen	+5.3 billion yen

Results by Group Company

At San ju San Bank on a non-consolidated basis, ordinary profit was 16.4 billion yen (up 4.8 billion yen year on year) and net income was 12.2 billion yen (up 4.2 billion yen year on year), both higher year on year. FG consolidated ordinary profit and profit attributable to owners of the parent reached record highs as described above.

Basis	Metric	FY Ended Mar 2026 (Actual)	FY Ended Mar 2025 (Actual)
San ju San Bank (non-consolidated)	Core net business profit	18.6 billion yen	13.3 billion yen
San ju San Bank (non-consolidated)	Net interest income	42.7 billion yen	36.5 billion yen
San ju San Bank (non-consolidated)	Ordinary profit	16.4 billion yen	11.6 billion yen
San ju San Bank (non-consolidated)	Net income	12.2 billion yen	8.0 billion yen
FG consolidated	Ordinary profit	16.6 billion yen	11.7 billion yen
FG consolidated	Profit attributable to owners of parent	12.3 billion yen	8.6 billion yen

Full-Year Forecast (Fiscal Year Ending March 31, 2027, Plan)

For FY2026 (the fiscal year ending March 31, 2027), reflecting the impact of the December 2025 policy interest rate increase (from 0.50% to 0.75%) and other factors on the upwardly revised medium-term management plan (which assumed a policy rate of 0.50%), the company plans FG consolidated ordinary profit of 21.4 billion yen (up 4.8 billion yen, or 28.6%, year on year) and profit attributable to owners of the parent of 15.0 billion yen (up 2.7 billion yen, or 21.5%), a substantial increase. At San ju San Bank on a non-consolidated basis, the plan calls for core net business profit of 22.0 billion yen (up 3.4 billion yen), ordinary profit of 21.8 billion yen (up 5.4 billion yen) and net income of 15.4 billion yen (up 3.2 billion yen), with record-high net income planned on both an FG consolidated and a San ju San Bank non-consolidated basis.

Item	FY Ending Mar 2027 (Plan)	FY Ended Mar 2026 (Actual)	Change
Ordinary profit (FG consolidated)	21.4 billion yen	16.6 billion yen	+4.8 billion yen
Profit attributable to owners of parent (FG consolidated)	15.0 billion yen	12.3 billion yen	+2.7 billion yen
Core net business profit (San ju San Bank, non-consolidated)	22.0 billion yen	18.6 billion yen	+3.4 billion yen
Ordinary profit (San ju San Bank, non-consolidated)	21.8 billion yen	16.4 billion yen	+5.4 billion yen
Net income (San ju San Bank, non-consolidated)	15.4 billion yen	12.2 billion yen	+3.2 billion yen

Shareholder Returns

The annual dividend per share for the fiscal year ended March 31, 2026 was 144 yen (up 44 yen year on year), a third consecutive year of increase. The dividend payout ratio was 30.3% (up 0.3pt year on year). The company implemented a four-for-one split of its common shares effective April 1, 2026, and plans a dividend of 44 yen for the fiscal year ending March 31, 2027 on a post-split basis (up 8 yen year on year), which would be a fourth consecutive year of increase. Its shareholder return policy is to maintain a stable dividend of 18 yen while targeting a dividend payout ratio of around 30%.

Item	FY Ending Mar 2027 (Plan)	FY Ended Mar 2026 (Actual)
Annual dividend per share (FY Ending Mar 2027 figure on a post-split basis)	44 yen	144 yen
Dividend payout ratio	30.5%	30.3%

Medium-Term Management Plan and Topics

Against the final-year targets of the Third Medium-Term Management Plan (period: April 2024 to March 2027), FY2025 results were ROE of 5.65% (target of 6% or more; progress rate 94.2%), net income of 12.3 billion yen (target of 13.5 billion yen; progress rate 91.1%), a core OHR of 66.4% (target of below 65%) and a capital adequacy ratio of 8.41% (target of around 8.6%). For strategic shareholdings, the company has set a reduction target of bringing the ratio to net assets (on a market-value basis) below 20% by the end of FY2028 and is steadily reducing both the number of issues held and their book value. The company also announced that on May 13, 2026 it signed a basic agreement on a management integration with Aichi Financial Group, with a definitive agreement scheduled to be signed in September 2026 and a merger effective date of April 1, 2027.

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.