Fiscal Year Ending March 2027 Q1 Financial Summary [Japanese GAAP] (Consolidated)

Overview of results

For the first quarter, ordinary income increased significantly year over year to 136,802 million yen. Ordinary profit was 46,968 million yen and net income attributable to owners of the parent reached 32,740 million yen, marking substantial profit growth. By segment, the banking business contributed mainly, and the leasing business also drove profit growth due to the impact of newly consolidated subsidiaries. The full-year earnings forecast was revised upward to ordinary profit of 167,000 million yen (up by 15 billion yen from the previous forecast) and net income attributable to owners of the parent of 115,000 million yen (up by 10 billion yen). Possibility of a share buyback is also indicated.

Outlook and impact on investors

The upward revision to the full-year forecast is attributable to improved asset management and cost control. Announcement of a share buyback suggests enhanced shareholder returns. Going forward, focus will be on the stability of revenue driven by interest rate environment and asset management, progress of integration effects in the leasing business, and the status of loans and securities investments. Although the equity ratio is in the 8% range and relatively low, there may be room for capital policy improvements.