Yokohama Financial Group (7186) 4Q results: Net profit guidance strong, but no buyback announced

研报英文原文证据摘录

Yokohama Financial Group (7186) 4Q results: Net profit guidance strong, but no buyback announced

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

13 May 2026

Yokohama Financial Group (7186) Overweight

7186.T, 7186 JP

4Q results: Net profit guidance strong, but no buyback Price (12 May 26):¥1,599

announced Price Target (Dec-26):¥1,850

Neutral: 4Q FY2025 net profit totaled ¥21.5 billion (+7% YoY), close to our Japan Equity Research

estimate of ¥21.8 billion. Net interest income was above our forecast, but bond-

Banks

related losses were greater. FY2026 net profit guidance is ¥129 billion (+21% YoY;

we had expected guidance of ¥115 billion). DPS guidance is ¥47 (we had expected Takahiro Yano, CFA AC

guidance of ¥40). We had expected management to announce a share buyback of (81-3) 6736-8616

takahiro.yano@jpmorgan.com

up to ¥40 billion (though over about one year), but it did not. Our initial impression

Kohichi Takano

of the results is neutral. (81-3) 6736 8621

• Net interest income guidance reflects impact of rising market rates: See kohichi.takano@jpmorgan.comJPMorgan Securities Japan Co., Ltd.

Figure 1 for quarterly earnings trends. The yield on yen deposits rose 7bps

QoQ, in line with the increases for other major domestic banks that also

reported results May 12. While FY2026 guidance assumes the policy rate stays

at 0.75% (i.e., no additional rate hikes), it exceeded our expectations. Guidance

reflects the effect of 3-month TIBOR already rising in anticipation of the next

rate hike, and this may be one reason for the overshoot versus our expectations.

The 10-year JGB yield assumption is 2.15%. We see further upside for

improvement in investment securities income. Fee income guidance is a

somewhat conservative -13% YoY, but our overall impression of FY2026