Iyogin Holdings (5830): FY2025 Results Summary — Record Profit of ¥74.2bn on Higher Interest and Dividend Income

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

Iyogin Holdings, Inc. reported record-high earnings for fiscal 2025. Profit attributable to owners of parent came to ¥74,253mn, up ¥20,932mn or 39.3% year on year, marking the fifth consecutive fiscal year of higher net income. Consolidated core business gross profit rose 20.3% to ¥131,587mn on higher interest and dividend income, while expenses fell 6.5% to ¥63,947mn following the elimination of the previous fiscal year’s costs for building the next core banking system. For fiscal 2026 the company forecasts profit attributable to owners of parent of ¥77.0bn.

Consolidated Results (Full-Year Actual)

Consolidated core business net income increased 64.9% to ¥67,640mn, driven by a ¥14,902mn rise in interest and dividend income. The company attributes this to an increase in gain on loan management resulting from a larger loan balance and wider JPY loan-deposit spreads, and to an increase in gain on securities management resulting from improved spreads on foreign currency securities. Other operating income rose ¥6,974mn on a reduction in foreign currency procurement costs and gains related to foreign exchange and derivatives. Credit costs increased ¥5,976mn to ¥7,816mn, as the provision of reserve for general loan losses rose (reversal decreased) and the amount of amortization of non-performing loans increased due to bankruptcies and downgrades. Extraordinary income (loss) turned positive at ¥5,349mn, of which ¥6,000mn was settlement income.

Item (¥mn, holding company consolidated)	FY25	YoY	FY24
Consolidated core business gross profit	131,587	+22,192 (+20.3%)	109,395
Interest and dividend income	104,432	+14,902	89,530
Fees and commissions	11,339	+317	11,022
Other operating income (excluding profit/loss related to bonds including JGBs, etc.)	15,815	+6,974	8,841
Expenses (-)	63,947	(4,426) ((6.5)%)	68,373
Personnel expenses	33,435	+1,762	31,673
Nonpersonnel expenses	26,070	(6,037)	32,107
Consolidated core business net income	67,640	+26,619 (+64.9%)	41,021
Credit costs (-)	7,816	+5,976	1,840
Gain (loss) related to securities	36,599	+3,711	32,888
Gain (loss) related to bonds including JGBs	8,164	(8,516)	16,680
Gain (loss) related to stock, etc.	28,435	+12,227	16,208
Ordinary income	99,206	+24,179 (+32.2%)	75,027
Extraordinary income (loss)	5,349	+6,130	(781)
Income before income taxes	104,556	+30,311	74,245
Net income	74,266	+20,962 (+39.3%)	53,304
Profit attributable to owners of parent	74,253	+20,932 (+39.3%)	53,321
Ordinary revenue	266,118	+34,230 (+14.8%)	231,888
Consolidated business net income	76,348	+17,054 (+28.8%)	59,294

Key management indicators moved in line with the plan. Consolidated ROE (TSE standard) improved to 8.83% from 6.48% in FY24, the consolidated core OHR improved to 48.5% from 62.5%, and EPS reached ¥253.9 against ¥178 in FY24. ROA rose to 0.78% from 0.58% in FY24, a level the company describes as among the highest of regional banks. Growth investment amounted to ¥3.5bn in FY25, including ¥2.0bn in funds established.

Profit and Loss of Major Group Companies

At Iyo Bank on a nonconsolidated basis, profit reached a record high on a steady increase in core business net income, mainly from an increase in interest and dividend income. Core business gross profit rose 21.1% to ¥125,319mn, expenses declined 7.1% to ¥61,158mn, core business net income rose 70.6% to ¥64,160mn, and net income rose 40.3% to ¥72,505mn. Figures for each group company are stated before inter-group elimination.

Company (FY25, ¥mn)	Core business gross profit	Expenses (-)	Core business net income	Ordinary income	Net income	Ordinary revenue
Iyo Bank (nonconsolidated)	125,319	61,158	64,160	96,650	72,505	241,264
Iyogin Leasing	1,596	941	655	524	387	21,871
Shikoku Alliance Securities	1,781	1,689	92	100	82	1,993
Iyogin Credit Guaranty	2,127	316	1,811	1,353	922	2,385
Iyogin Computer Service	1,944	1,528	416	383	272	3,260

Balances, Credit Costs and Soundness

Total loans stood at ¥6,164.4bn, up ¥284.4bn or 4.8% year on year, with loans within Ehime Prefecture at ¥3,114.1bn (up 6.3%) and loans in Tokyo and Nagoya at ¥855.6bn (up 1.5%). Deposits, etc. rose ¥165.3bn or 2.3% to ¥7,298.3bn, the 29th consecutive year of increase, and assets in custody rose 24.5% to ¥1,008.3bn, of which Iyo Bank accounted for ¥520.8bn and Shikoku Alliance Securities for ¥487.5bn. Total credit costs were ¥7.8bn against ¥1.8bn in FY24, and total disclosed non-performing loans under the Financial Reconstruction Act rose ¥7.2bn to ¥102.0bn, lifting the ratio of disclosed non-performing loans to 1.58% from 1.54%. Valuation gain on securities was ¥293.0bn and the gross equity ratio was 15.53%, while the consolidated CET1 ratio on a fully loaded Basel III basis was 14.97%, up from 14.17% in FY24.

FY2026 Forecast

For fiscal 2026 the company expects profit attributable to owners of parent to remain high at ¥77.0bn, backed by a steady increase in core business gross profit. Interest and dividend income is projected to rise ¥13.6bn to ¥118.0bn, while non-interest income is expected to decline ¥6.1bn to ¥21.0bn. Forecast assumptions are two policy rate hikes totaling 0.50% during the fiscal year for domestic interest rates, and a US policy rate of 3.5% at fiscal year-end. On a bank nonconsolidated basis, core business gross profit is forecast at ¥133.0bn, core business net income at ¥69.0bn, ordinary income at ¥108.5bn and net income at ¥75.0bn.

Item (¥bn, holding company consolidated)	FY26 Forecast	YoY	FY25 (Actual)
Consolidated core business gross profit	139.0	+7.5	131.5
Of which, interest and dividend income	118.0	+13.6	104.4
Of which, non-interest income	21.0	(6.1)	27.1
Expenses (-)	66.5	+2.6	63.9
Consolidated core business net income	72.5	+4.9	67.6
Credit costs (-)	6.0	(1.8)	7.8
Gain (loss) related to securities	40.0	+3.5	36.5
Ordinary income	111.0	+11.8	99.2
Profit attributable to owners of parent	77.0	+2.8	74.2

Shareholder Returns

The dividend per share for FY25 was raised to ¥60 a year, up ¥15 from FY24, and the company plans ¥80 a year for FY26. Treasury stock purchases totaled ¥17.0bn in FY25. The total payout ratio was 46.5% in FY25 against 45.8% in FY24, and the shareholder return policy is to raise the total payout ratio to 50% or higher by FY26. Cross-shareholdings were reduced by ¥8.5bn on an acquisition cost basis in FY25 following a ¥7.1bn reduction in FY24, against a target of a ¥25.0bn reduction by FY26.

Item	FY24	FY25	FY26
Dividend per share (annual)	—	¥60 (up ¥15 YoY)	¥80 (planned)
Purchase of treasury stock	—	¥17.0bn	—
Total payout ratio	45.8%	46.5%	50% or higher
Reduction of cross-shareholdings (acquisition cost basis)	¥7.1bn	¥8.5bn	Down ¥25.0bn (cumulative under the Medium-Term Management Plan)
Consolidated CET1 ratio (fully loaded Basel III basis)	14.17%	14.97%	Approx. 14.0%

Medium-Term Management Plan and Topics

FY25 was covered by the Fiscal 2024 Medium-Term Management Plan, positioned as Phase 1 (building a foundation) of a plan sequence running through Fiscal 2030. FY26 targets were revised upward considering steady business progress and rising market interest rates: profit attributable to owners of parent to ¥77.0bn from ¥58.0bn before revision, consolidated ROE (TSE standard) to 8.5% or more from 7% before revision, and consolidated core OHR to approximately 48% from around 50% before revision. Growth investment of ¥10.0bn is planned for FY26.

On interest rates, the company estimates an accretive effect on profit of ¥5.0bn in FY26 and ¥21.0bn in the future under its main scenario, with an additional ¥11.0bn if interest rates rise more than expected. A 0.25% rate hike is expected to raise core business gross profit by approximately ¥6.0bn in a single fiscal year and to lower valuation gains on yen bonds by approximately ¥1.2bn after considering hedge effects. Around 60% of JPY loans are variable rate.

Business initiatives cited include the ship division, where Iyo Bank has the No. 1 loan balance among regional banks (No. 3 in Japan); the DHD model, under which the share of procedures via the AGENT app exceeded 50% as of March 31, 2026 and the number of registered accounts exceeded 280,000; and portfolio restructuring, under which 35 businesses were evaluated and classified into 16 businesses to be strengthened, 14 to be improved and 5 to be maintained. New business development includes the establishment of Ishizuchi Turnaround Servicer Co., Ltd., described as the first servicer headquartered in Shikoku, and the ¥2.0bn IHD STRATEGY FUND, whose investees are GEOFLA CORPORATION, ATOMica Inc. and JPYC Inc. As of the end of May 2026, P/B stood at 1.00x, with net assets per share of ¥3,046 and a May 29, 2026 closing price of ¥3,054.

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.