ZENKOKU HOSHO Co.,Ltd.
7164・Prime Market・Other Financing Business
Business
Zenkoku Hosho Co., Ltd., founded in 1981, is an independent credit guarantee company operating nationwide with Housing Loan Guarantee as its core business. The company has formed alliances with a wide range of financial institutions, including banks, shinkin banks, credit unions, and JA (agricultural cooperatives), and its guaranteed obligation balance reached ¥21,429,491 million as of the end of March 2026. As it does not belong to any specific financial institution group, the company serves a broad customer base of financial institutions nationwide, giving it a business structure capable of diversifying regional economic risk. In addition to Housing Loan Guarantee, the company has expanded into Card Loan and Education Loan Guarantee, as well as debt collection and credit guarantee areas through Group companies.
Business Model
The company receives guarantee fees from guarantee applicants (borrowers) either as a lump sum or on a monthly basis at the start of the guarantee, and recognizes revenue over the guarantee period. Fees received are invested in low-risk assets such as deposits and government bonds, with the resulting interest income (¥4,731 million in FY2026 (ending March 2026)) also serving as a revenue source. When a subrogated payment occurs, the company acquires the resulting indemnity claim and seeks recovery through voluntary sale or auction utilizing real estate collateral. Because consideration is received at the same time the guarantee is underwritten, fund liquidity is high, and the structure allows working capital to be covered by the company's own funds.
Company Strengths
As an independent player not affiliated with any specific financial institution group, the company has nationwide alliances across multiple types of institutions including banks, shinkin banks, credit unions, and JA. The Housing Loan Guarantee balance for private financial institutions reached ¥17,816,229 million as of the end of March 2026, with risk widely diversified geographically and by institution type due to this diversification across business types.
The guarantee liability balance expanded from ¥17,688,870 million at the end of March 2024 to ¥21,429,491 million at the end of March 2026. In addition to new guarantees executed (¥1,919,407 million in FY2026 (ending March 2025)), the company has accelerated balance accumulation through a two-pronged approach that also includes acquiring balances from existing markets via RMBS and ABL Lending, M&A, etc. (¥1,673,627 million in the same period).
The company has built a system to work in cooperation with financial institutions from the early stages of delinquency to normalize repayments, keeping the ratio of subrogation payment amounts to the guarantee liability balance at a low level. The majority of recourse receivables are secured by real estate collateral, and recovery has progressed steadily, with recourse receivable collection amounting to ¥10,545 million in FY2026 (ending March 2025).
ENVALITH's Perspective
Performance Trend
Operating revenue grew for five consecutive fiscal years from ¥48,842 million in FY2022 (ended March 2022) to ¥58,739 million in FY2026 (ending March 2026), a CAGR of approximately 4.7%. FY2026 revenue increased 3.1% year on year, maintaining the growth trend. On the other hand, operating income turned to a slight decline, falling 1.4% year on year to ¥41,382 million, mainly due to an increase in provision for loss on guarantees (+¥1,553 million). Ordinary income rose 4.6% year on year to ¥46,554 million, supported by higher interest income received and recognition of equity in earnings of affiliates, while net income attributable to owners of the parent increased 1.4% year on year to ¥32,526 million, securing an increase in profit. As an external factor, the rising interest rate environment has boosted investment income, while a decline in new housing starts amid persistently high housing prices is exerting downward pressure on demand for new guarantees. For FY2027 (ending March 2027), the company forecasts operating revenue of ¥60,600 million, ordinary income of ¥47,200 million, and net income of ¥32,700 million.
Growth Strategy
Under the new medium-term management plan "Go for 50," the company will drive the formation of a comprehensive group centered on Housing Loan Guarantee through fiscal year 2030
Expanding guarantee business in the new housing loan market by leveraging East-West area systems for regional characteristic analysis and strengthening responsiveness to partner financial institutions' needs. Rising borrowing amounts accompanying housing price increases serve as a tailwind for the market environment, and the company will continue to build up guarantee balances in the resilient housing loan market.
A strategy to build up guarantee liability balances from the existing housing loan market through the ABL Lending method. Long-term loans receivable at the end of FY2026 (ended March 2026) expanded significantly to ¥23,544 million (up 62.2% from ¥14,515 million in the previous fiscal year), and inorganic growth is progressing steadily.
Invested in three startups via CVC and concluded Capital/Business Alliances with two companies. Promoting expansion of the guarantee domain and growth of revenue sources in the debt management and collection field through Minori Shinyo Hosho (new alliances with 5 institutions) and Akebono Saiken Kaishu (new alliance with 1 institution). Equity in earnings of affiliates of ¥1,193 million began to be recorded from the current fiscal year.
Under the vision of "forming a comprehensive group in the housing life and finance fields centered on Housing Loan Guarantee," the company has set four basic policies: (1) growth and evolution of core business, (2) acquisition of new revenue sources, (3) strengthening human capital, organization and governance, and (4) capital policy, and will execute concrete strategies over the five-year plan period.
Implementing growth investment alongside agile share buybacks. In FY2026 (ended March 2026), the company conducted share buybacks of ¥7,000 million, increasing the number of treasury shares at fiscal year-end to 4,881,865 shares (up from 2,742,758 shares in the previous fiscal year). The annual dividend was ¥120 (payout ratio of 49.2%), an increase from the previous fiscal year's actual result (equivalent to ¥106 after split adjustment). For FY2027 (ending March 2027), the company forecasts a dividend of ¥123 and targets a payout ratio of 50%.
Last updated: July 19, 2026