Yokohama Financial Group: F3/26 Results: Main Business Strong; Results Reassuring

研报英文原文证据摘录

Yokohama Financial Group: F3/26 Results: Main Business Strong; Results Reassuring

Update

May 12, 2026 10:02 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MYokohama Financial Group (7186) | Japan Mia Nagasaka

Equity Analyst

F3/26 Results: Main Business Mia.Nagasaka@morganstanleymufg.com +81 3 6836-8406

Yokohama Financial Group (7186.T, 7186 JT)

Banks | JapanStrong; Results Reassuring

Stock Rating Equal-weight

Industry View Attractive

Price target ¥1,600

Reaction to earnings Shr price, close (May 12, 2026) ¥1,599

Mkt cap, curr, basic (bn) ¥1,829.7

Strengthens our thesis Modest upside Modest revision higher Avg daily trading value (bn) ¥4.3

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Guidance conservative; if no growth investment opportunities emerge we see

strong probability of buybacks equivalent to dividend payout.

F3/26 results overview: Yokohama FG reported F3/26 consolidated NP of ¥106.5bn

(+28.6% YoY), exceeding guidance, driven by growth in loan balances and interest

income as well as higher fees and commissions. Average domestic loan balances

were Yokohama Bank +4.1% YoY, HNB -1.6%, and Kanagawa Bank +2.9%. The

domestic loan yield (three banks) improved to 1.456%. Domestic fees and

commissions totaled ¥47.0bn (+5.5% YoY). Credit costs (three banks) were ¥7.4bn

(cost ratio 4bps). Expenses (three banks combined) were ¥134.2bn (expense ratio

49.0%). Valuation gains/losses securities (as of Mar‑2026) were -¥44.8bn for JGBs

and -¥1.3bn for foreign bonds. Equity-related gains/losses (three banks) were ¥5.7bn.

2) F3/27 consolidated NP guidance is ¥129.0bn (+21.1% YoY; vs. our ¥120.4bn), with

a ROE (TSE basis) target of 9.0%.