SBI Shinsei Bank (8303): 1Q results: Strong non-interest income, pre-tax profit 40% of annual guidance

Research evidence excerpt

SBI Shinsei Bank (8303): 1Q results: Strong non-interest income, pre-tax profit 40% of annual guidance

J P M O R G A N Asia Pacific Equity Research

31 July 2026

SBI Shinsei Bank (8303) Underweight

8303.T, 8303 JP

1Q results: Strong non-interest income, pre-tax profit Price (31 Jul 26):¥1,491

40% of annual guidance Price Target (Dec-26):¥1,520

Neutral: Net profit in 1Q FY2026 fell 13% YoY to ¥38.4 billion, exceeding our Japan Equity Research

forecast of ¥19.7 billion. Guidance is for pretax profit, and 1Q progress was a high

Banks

40%. The company also decided to introduce an interim dividend of ¥10 per share.

The company said it would target an annual dividend of at least the ¥42 per share Takahiro Yano, CFA AC

of last fiscal year, so its tone was slightly more bullish than previous guidance (81-3) 6736-8616

takahiro.yano@jpmorgan.com

simply for ¥42 per share. On the other hand, we continue to monitor the

Kohichi Takano

sustainability of the strength in non-interest income. (81-3) 6736 8621

• Strong 1Q earnings progress thanks to non-interest income: Figure 1 kohichi.takano@jpmorgan.comJPMorgan Securities Japan Co., Ltd.

shows quarterly earnings. Net interest income and expenses were in line with

our forecasts, while non-interest income and credit costs were better than we

assumed. Non-interest income was particularly strong in overseas businesses,

securities investments and others, but the reason for this included earnings

from equity investment trusts. Looking back at FY2025 non-interest income,

capital gains were ¥25 billion (¥14.9 billion in 1Q FY2025), and non-bank

O&D (securitization of receivables by banks and non-bank subsidiaries) was

¥14.1 billion (¥3.9 billion in 1Q FY2025). Capital gains were ¥9.1 billion and