Yokohama Financial Group (7186): 4Q: In line; FY3/27 guidance beats; no buyback/uncertainty on capital policy

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Yokohama Financial Group (7186): 4Q: In line; FY3/27 guidance beats; no buyback/uncertainty on capital policy

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Yokohama Financial Group (7186)

4Q: In line; FY3/27 guidance beats; no

buyback/uncertainty on capital policy

Maintain Rating: NEUTRAL | PO: 1,700 JPY | Price: 1,599 JPY

12 May 2026

Results date: 12 May (Tue) 15:30 / Conference call: None Equity

In line (FY3/27 guidance beats, but no share buyback)

Shinichiro Nakamura >>

FY3/26 full-year results: Parent pre-provision operating profit was JPY139.2bn (YoY Research Analyst

+19% / 99% progress vs full-year guidance), and consolidated NP was JPY106.5bn (YoY BofAS Japan

+81 3 6225 8824

+29% / 103% progress), in line with our estimates with limited surprise. As of end- shinichiro.nakamura@bofa.com

March, unrealized losses on diversified investments (foreign bonds + investment trusts) Yuji Kobayashi >>

were JPY -17.5bn (JPY -0.8bn vs end-December), and unrealized losses on JGBs were JPY Research Analyst BofAS Japan

-44.8bn (JPY +4.9bn vs end-December), showing slight improvement; the total was JPY - +81 3 6225 8791

62.3bn (33% of the FY3/27 ordinary profit guidance), at a low level. yuji.kobayashi@bofa.com

Taisei Okui >>

FY3/27 guidance: Parent pre-provision operating profit of JPY177.0bn (YoY +27%) and Research Analyst

BofAS Japan

consolidated NP of JPY129.0bn (YoY +21%) were announced. The initial guidance +81 3 6225 8947

assumes the policy rate remains at 0.75%. Consolidated NP exceeds our estimate of taisei.okui@bofa.com

JPY121.8bn and the IFIS consensus of JPY123.0bn (TIBOR rate hikes are reflected more

than policy rate increases, leading to upside in domestic loan interest income / bond

loss-cutting undershoots), giving a somewhat positive impression. In addition, credit Stock Data