The accounting change, stated plainly
Seven Bank, Ltd. (TSE: 8410) published consolidated results for the three months to June 30, 2026 on August 7, 2026 under Japanese GAAP. Ordinary income rose 6.6% to ¥56,851 million, ordinary profit 63.4% to ¥10,802 million and net profit attributable to owners of the parent 57.1% to ¥6,582 million, for earnings per share of ¥5.63 against ¥3.65. On a parent-only basis, ordinary income was ¥37,229 million, ordinary profit ¥9,475 million and net profit ¥6,434 million.
One item deserves to be read before the growth rate. From this quarter the bank changed the depreciable life of its ATMs from five years to seven, after replacing the entire fleet with fourth-generation machines and finding that the improved hardware outlasts the old assumption. The change reduced depreciation by ¥1,077 million and raised ordinary profit and pre-tax profit by the same amount. Ordinary profit rose ¥4,195 million in total, so the accounting change is roughly a quarter of the increase — the rest is trading.
The ATM network is still growing
The domestic business grew revenue 6.5% to ¥38,457 million and segment profit 44.6% to ¥9,721 million, the ¥1,077 million accounting benefit included. Transaction volumes at deposit-taking institutions held firm and cash-charging for various cashless payment services grew steadily, so total ATM usage ran ahead of a year earlier.
At the end of June 2026 the bank had 28,614 ATMs installed, up 1.8% year on year, averaging 110.5 transactions per machine per day (+1.0%) for a total of 286 million transactions (+2.9%). Partner financial institutions numbered 703. From June 2026 the bank began installing ATMs in FamilyMart stores — a notable step for a network built around its parent group's own convenience stores. It continues to push the +Connect service, which handles financial-institution procedures at the ATM, as part of a strategy it describes as moving the machine from a cash platform to a service platform.
Overseas quadrupled; cards shrank
The overseas segment grew revenue 14.5% to ¥12,055 million and profit 340.1% to ¥1,184 million from ¥269 million. In the United States, FCTI, Inc. had 10,845 ATMs at end-March 2026, up 29.2%; in the Philippines, Pito AxM Platform, Inc. had 4,104 (+12.6%); in Malaysia, Reachful Malaysia Sdn. Bhd. had 126 (+125.0%); Indonesia's PT. ABADI TAMBAH MULIA INTERNASIONAL was the exception at 9,100 (−1.9%).
The credit card and e-money segment shrank on every measure. Revenue fell 4.2% to ¥6,656 million, and although the segment loss narrowed to ¥57 million from ¥370 million, it booked a ¥923 million impairment this quarter. Cardholders numbered 3.05 million (−2.2%), the financial product balance ¥44.9 billion (−1.4%) and credit card shopping volume ¥188.8 billion (−2.3%). nanaco e-money members rose 1.5% to 84.99 million, but e-money transaction volume fell 9.9% to ¥343.2 billion.
Balance sheet and revised guidance
Total assets rose 1.7% from the March year-end to ¥1,572,063 million, of which cash and due from banks — the working cash the ATM network requires — accounted for ¥868,916 million, more than half. Net assets were essentially flat at ¥286,465 million, so the equity ratio eased to 17.8% from 18.1%. The bank notes that this ratio is net assets less subscription rights and non-controlling interests divided by total assets, and is not the regulatory capital adequacy ratio.
Guidance was revised. For the first half the bank now guides to ordinary income of ¥114,000 million (+5.9%), ordinary profit of ¥15,500 million (+4.6%) and net profit of ¥8,000 million (−19.7%); for the full year, ordinary income of ¥235,500 million (+7.0%), ordinary profit of ¥33,500 million (+11.0%) and net profit of ¥20,000 million (+48.4%), for earnings per share of ¥17.12. First-quarter ordinary profit represents 32.2% of the full-year target. The annual dividend forecast is unchanged at ¥11.00 per share.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Operating revenue (¥ million) | 56,851 | 53,323 | +6.6% |
| Ordinary profit (¥ million) | 10,802 | 6,607 | +63.4% |
| Net profit attrib. to owners of parent (¥ million) | 6,582 | 4,188 | +57.1% |
| Comprehensive income (¥ million) | 6,648 | 2,796 | +137.7% |
| EPS (¥) | 5.63 | 3.65 | +54.2% |
| Domestic (Banking & Other) — revenue (¥ million) | 38,457 | 36,122 | +6.5% |
| Domestic (Banking & Other) — segment profit (¥ million) | 9,721 | 6,725 | +44.6% |
| Credit Card & E-Money — revenue (¥ million) | 6,656 | 6,949 | −4.2% |
| Credit Card & E-Money — segment profit (¥ million) | −57 | −370 | loss narrowed |
| Overseas — revenue (¥ million) | 12,055 | 10,524 | +14.5% |
| Overseas — segment profit (¥ million) | 1,184 | 269 | +340.1% |
| Total assets (¥ million) | 1,572,063 | 1,545,743 | +1.7% |
| Net assets (¥ million) | 286,465 | 286,265 | +0.1% |
| Equity ratio | 17.8% | 18.1% | −0.3 pt |
| FY3/2027 guidance — operating revenue (¥ million) | 235,500 | — | +7.0% |
| FY3/2027 guidance — ordinary profit (¥ million) | 33,500 | — | +11.0% |
| FY3/2027 guidance — net profit (¥ million) | 20,000 | — | +48.4% |
| FY3/2027 guidance — EPS (¥) | 17.12 | — | n.m. |
| Annual dividend per share (¥) | 11.00 | 11.00 | unchanged |
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