Yokohama Financial Group (7186): Earnings model update

研报英文原文证据摘录

Yokohama Financial Group (7186): Earnings model update

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

02 July 2026

Yokohama Financial Group (7186) Overweight

7186.T, 7186 JP

Earnings model update Price (02 Jul 26):¥1,780

▲Price Target (Dec-26):¥1,980

Prior (Dec-26):¥1,850

We raise our price target from ¥1,850 to ¥1,980, up 7%, and maintain our

Overweight rating. We base our end-2026 price target of ¥1,980 on our FY2027 Japan Equity Research

EPS estimate of ¥152.5 and a target P/E of 13x. Our previous price target of ¥1,850 Banks

was based on our prior FY2027 EPS estimate of ¥142.4 and a target P/E of 13x. We AC Takahiro Yano, CFA

raise our earnings estimates mainly to reflect an improved outlook for net interest (81-3) 6736-8616

income (NII). We continue to assume the BoJ raises Japan’s policy interest rate to takahiro.yano@jpmorgan.com

1.25% in December 2026 and then to 1.50% in June 2027. Regarding NII, we Kohichi Takano

slightly raise the pace at which we expect the domestic loan yield to rise, and we (81-3) 6736 8621

also upgrade our view of returns on marketable securities to reflect their kohichi.takano@jpmorgan.com

replacement. We raise our net profit estimates by 7% for FY2026 and 8% for JPMorgan Securities Japan Co., Ltd.

FY2027.

• Expect a share buyback announcement with 1Q results: We expect Key Changes (FYE Mar) Prev Cur Δ

Yokohama Financial Group to implement share buybacks of ¥50 billion in Adj. EPS - 27E (¥) 114.95 122.19 6.3%

FY2026, with a dividend payout ratio of 40% and a total payout ratio of Adj. EPS - 28E (¥) 142.45 152.54 7.1%

77%. However, the company included a note with last year’s share buyback

stating that some or all of the share buyback may not be executed depending Style Exposure

on strategic investment opportunities and market conditions.