Juroku FG Q1 Core Business Profit Jumps 52% as Net Interest Income Adds ¥3.3 Billion

Rate-driven revenue, falling costs

Juroku Financial Group, Inc. (TSE: 7380) published consolidated results for the three months to June 30, 2026 on August 4, 2026 under Japanese GAAP. Ordinary income rose 9.3% to ¥39,287 million, an increase of ¥3,351 million, while ordinary expenses rose only ¥1,002 million to ¥28,051 million. Ordinary profit therefore rose 26.4% to ¥11,235 million and net profit attributable to shareholders 24.4% to ¥7,560 million. Earnings per share were ¥42.69 against ¥33.86, restated for the five-for-one share split of April 1, 2026.

Underneath the reported numbers, consolidated core gross business profit rose 20.6% to ¥24,733 million. Net interest income supplied most of the gain, up 22.7% to ¥18,031 million, with net fees and commissions up 6.6% to ¥5,169 million and other operating income excluding bond results up 58.3% to ¥1,532 million. General and administrative expenses fell 1.8% to ¥11,716 million, so consolidated core net business profit rose 51.6% to ¥13,017 million and the adjusted overhead ratio improved to 47.37% from 58.13%.

Credit costs quadruple, equity gains fade

Two items worked the other way. Credit-related costs rose to ¥2,357 million from ¥504 million, an increase of ¥1,853 million, and gains on equity-related transactions fell to ¥1,199 million from ¥3,462 million. Losses on government and other bonds narrowed to ¥1,191 million from ¥2,858 million, an improvement of ¥1,667 million, so substantive net business profit still rose to ¥11,826 million from ¥5,730 million.

At the bank level, Juroku Bank's core net business profit rose to ¥12,386 million from ¥7,511 million and customer-service business profit — loan spread income plus fees, less operating expenses — to ¥5,931 million from ¥3,088 million. The bank's own adjusted overhead ratio fell to 45.06% from 57.87%.

Balance sheet, guidance and dividend

Total assets rose ¥219,183 million from the March year-end to ¥7,745,201 million, with liabilities up ¥170,577 million to ¥7,223,318 million and net assets up ¥48,606 million to ¥521,882 million. Deposits including negotiable certificates grew ¥180,876 million to ¥6,562,346 million and securities ¥117,803 million to ¥1,230,354 million, while loans and bills discounted rose only ¥7,259 million to ¥5,083,465 million. Shareholders' equity reached ¥517,089 million against ¥468,463 million, taking the group's own capital ratio to 6.6% from 6.2%. Comprehensive income of ¥53,646 million — nearly seven times the quarter's net profit — reflects the mark-to-market on that securities book.

Juroku left its guidance unchanged: full-year ordinary profit of ¥44,000 million (+2.8%) and net profit of ¥30,000 million (+9.5%), for earnings per share of ¥169.39, with the first half guided to ¥21,000 million and ¥14,500 million respectively. The first quarter has therefore delivered 25.5% of the full-year ordinary-profit target. The annual dividend forecast is ¥53.00, split ¥25.00 and ¥28.00, against ¥48.00 for FY3/2026 on the company's own split-adjusted basis.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.