横滨金融集团（7186）1Q业绩：近期投资对资本影响不大；激进股东回报预期不变

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Yokohama Financial Group (7186)

1Q results: Little capital impact from recent investment;

expectations for aggressive shareholder returns

unchanged

Overweight

7186.T, 7186 JP

Price (05 Aug 26):¥1,855

Price Target (Dec-26):¥1,980

Neutral: 1Q FY2026 net profit came in at ¥32.0 billion (+18% YoY, +49% QoQ),

above our estimate of ¥26.5 billion. Versus our forecast, profit on service

transactions, etc. was weak, but results were broadly better than expected in other

areas. The company said the impact on the CET1 ratio from acquiring part of the

shares in Sumitomo Mitsui Trust Panasonic Finance is limited, and Yokohama FG

announced a share buyback of up to ¥20 billion. As of the 1Q announcement,

FY2026 net profit guidance remains unchanged.

We see no change in shareholder returns policy: The plan to acquire a 15%

stake in Sumitomo Mitsui Trust Panasonic Finance had been disclosed as of

March, but the final agreement was signed at end-July. Yokohama FG

explained that while the transaction will increase risk-weighted assets, it

expects to book around ¥5.0 billion in a gain on negative goodwill, and these

two factors will offset each other, resulting in only a limited impact on the

CET1 ratio. This implies no impact on the FY2025–FY2027 capital allocation

plan. Against this backdrop, the buyback announced with results is up to ¥20

billion (repurchase period through 30 Nov 2026; equivalent to 16% of net profit

guidance). We had expected a buyback announcement of up to ¥40 billion,

roughly covering one year. While the announced amount looks small at first

glance, we see ample scope for an additional buyback announcement as we

expect guidance to be raised at 1H results. There was no disclosure of the endJune CET1 ratio as of the 1Q announcement.

Net profit progress is 25%, lower than peers: See Figure 1 for quarterly

earnings trends. Domestic loan-deposit net interest income was broadly in line

with our estimates, but returns from investment assets other than loans

exceeded our expectations, and net interest income was stronger than expected.

The domestic deposit yield was 0.309% in 1Q—high versus other regional

…