Rakuten Bank, Ltd.
5838・Prime Market・Banks
Banking
Japan's largest domestic internet bank under Rakuten Group (single segment)
| Period | Current | Previous | Change |
|---|---|---|---|
| Consolidated ordinary income | ¥255,579 million | ¥184,534 million | ↑ |
| Consolidated ordinary profit | ¥103,091 million | ¥71,524 million | ↑ |
| Profit attributable to owners of parent | ¥73,072 million | ¥50,779 million | ↑ |
| Number of accounts (as of end of March 2026) | 18.07 million accounts | 17.63 million accounts (as of end of December 2025) | ↑ |
| Non-consolidated deposit balance (as of end of March 2026) | ¥12,964,475 million | ¥11,476,322 million | ↑ |
| Loan balance (consolidated) | ¥5,943,070 million | ¥5,044,131 million | ↑ |
| Consolidated total assets | ¥16,592,139 million | ¥14,748,639 million | ↑ |
| Consolidated ROE (return on equity) | 21.7% | 18.0% | ↑ |
| Consolidated capital adequacy ratio (domestic standard, notification-based) | 10.74% | 10.61% | ↑ |
| Yield on interest-earning assets (non-consolidated, full year) | 1.23% | 0.87% | ↑ |
| Overall interest margin (non-consolidated, full year) | 0.55% | 0.39% | ↑ |
| Expense ratio (non-consolidated) | 32.3% | 35.6% | ↓ |
| Earnings per share | ¥418.76 | ¥291.03 | ↑ |
| Non-performing loan ratio (non-consolidated) | 0.12% | 0.08% | ↑ |
Business Details
As an internet-only bank without physical branches or proprietary ATMs, the company provides a wide range of banking services to individuals and corporations, including deposits, loans, settlement, and foreign currency services. Its growth strategy centers on low-cost customer acquisition leveraging the Rakuten ecosystem (over 100 million IDs) and promoting the use of accounts as everyday transaction accounts. Its Taiwanese subsidiary, Rakuten International Commercial Bank Co., Ltd., is also consolidated. For FY2026 (ending March 2026) (full year), consolidated ordinary income was ¥255,579 million (up 38.4% year on year), and ordinary profit was ¥103,091 million (up 44.1%), achieving substantial growth in both revenue and profit.
Recent Overview
Full-year ordinary income up 38% and ordinary profit up 44%, with fintech business restructuring discussions with Rakuten Group resumed
For the full year of FY2026 (ending March 2026), the company achieved ordinary profit of ¥103,091 million (up 44.1% year on year), driven by higher investment yields resulting from the Bank of Japan's policy rate hikes (interest income on fund management up ¥69,459 million to ¥197,643 million) and expanded fee income from increased account numbers (18.07 million accounts). On the other hand, funding costs increased to ¥55,169 million (up ¥28,040 million year on year) due to deposit rate hikes. On February 25, 2026, the company entered into a basic agreement with Rakuten Group toward fintech business restructuring (integration of banking, card, and securities businesses), and discussions are underway with a target effective date of October 2026. For FY2027 (ending March 2027), the company forecasts ordinary income of ¥314,669 million (up 23.1%) and ordinary profit of ¥115,622 million (up 12.1%).
Key Products
Growth Drivers
- Rise in yield on interest-earning assets due to the Bank of Japan's policy rate hikes (full-year yield on interest-earning assets for FY2026 (ending March 2026) of 1.23%, up 0.36pt year on year) and accumulation of invested assets
- Continued increase in account numbers (18.07 million accounts as of end of March 2026) and increased fee income from remittance-related fees, direct debit fees, and card-related fees driven by growing everyday account usage
- Diversification and expansion of invested assets (loans of ¥5,943,070 million, purchased monetary claims of ¥3,198,668 million, securities of ¥2,324,804 million)
- Low-cost customer acquisition leveraging the Rakuten ecosystem (over 100 million IDs) and expansion of the new customer base through the banking agency business partnership with Rakuten Mobile
- Diversification of the loan portfolio through the introduction of new products such as securities-backed loans and reverse mortgages
- Optimization of funding costs, strengthened data integration, and improved decision-making agility through fintech business restructuring with Rakuten Group (integration of banking, card, and securities businesses)
Risks
- Risk of increased funding costs due to rising deposit interest rates (funding costs for FY2026 (ending March 2026) of ¥55,169 million, up ¥28,040 million year on year) and margin compression risk
- Risk of expanding unrealized losses on held securities due to changes in interest rate trends (valuation difference on held-to-maturity bonds of -¥68,386 million, widening from -¥41,672 million at the end of the prior fiscal year)
- Risk of increased credit costs (non-performing loan ratio rose to 0.12%, credit-related expenses of ¥4,958 million)
- Uncertainty regarding fintech business restructuring with Rakuten Group (specific structure and the involvement policy of Mizuho Bank and Mizuho Securities remain undetermined, and the impact on consolidated financial statements cannot be estimated)
- Impact of any deterioration in Rakuten Group's creditworthiness or brand on customer acquisition and retention
- Cybersecurity risk and system failure risk (increasing importance of capacity management amid growing account numbers and transaction volumes)
- Intensifying competition for customers and deposits from major bank groups' large-scale allocation of management resources to the retail segment and from telecom carrier-affiliated financial ecosystems
Last updated: June 22, 2026