Yokohama Financial Group, Inc.
7186・Prime Market・Banks
Yokohama Financial Group, Inc. (Banking Business, Single Segment)
A regional financial group based in Kanagawa Prefecture, with banking as its core business alongside securities, leasing, and other services.
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income | ¥490,724 million | ¥399,103 million | ↑ |
| Ordinary profit | ¥155,018 million | ¥122,764 million | ↑ |
| Profit attributable to owners of parent | ¥106,523 million | ¥82,805 million | ↑ |
| Comprehensive income | ¥196,514 million | ¥58,438 million | ↑ |
| Total assets | ¥25,670,496 million | ¥24,793,138 million | ↑ |
| Net assets | ¥1,418,344 million | ¥1,292,594 million | ↑ |
| Capital adequacy ratio (simplified) | 5.4% | 5.1% | ↑ |
| Total capital adequacy ratio (Basel III, internationally uniform standard, preliminary) | 14.94% | 15.67% | ↓ |
| Common Equity Tier 1 ratio (preliminary) | 14.42% | 15.39% | ↓ |
| Earnings per share | ¥94.02 | ¥71.63 | ↑ |
| Net assets per share | ¥1,263.05 | ¥1,128.09 | ↑ |
| ROE (TSE basis) | 7.9% | 6.4% | ↑ |
| Annual dividend per share | ¥38.00 | ¥29.00 | ↑ |
| Dividend payout ratio | 40.4% | 40.4% | — |
| Consolidated gross profit (combined for 3 banks) | ¥273,399 million | ¥244,420 million | ↑ |
| Core net business profit (excluding gains/losses on cancellation of investment trusts, combined for 3 banks) | ¥169,616 million | ¥133,743 million | ↑ |
| Credit-related costs (combined for 3 banks) | ¥7,418 million | ¥9,420 million | ↓ |
| Non-performing loan ratio (3 banks combined, non-consolidated) | 1.2% | 1.3% | ↓ |
| Period-end loan balance (3 banks combined, all branches) | ¥17,547.3 billion | ¥16,821.6 billion | ↑ |
| Period-end deposit balance (3 banks combined, all branches) | ¥20,937.3 billion | ¥20,538.0 billion | ↑ |
| Total interest margin (3 banks combined, all branches) | 0.43% | 0.31% | ↑ |
| Full-year ordinary profit forecast (FY2027, ending March 2027) | ¥191,500 million | ¥155,018 million (actual) | ↑ |
| Full-year profit attributable to owners of parent forecast (FY2027, ending March 2027) | ¥129,000 million | ¥106,523 million (actual) | ↑ |
Business Details
A regional financial group centered on three core banks—Bank of Yokohama, Higashi-Nippon Bank, and Kanagawa Bank—which also operates securities services, leasing services, information services/research, venture capital operations, and more. Its main customers are individuals, small and medium-sized enterprises, corporations, and local public bodies, primarily in Kanagawa Prefecture. The main pillars of earnings are the expansion of loan balances through enhanced solution-based sales and increased deposit and loan interest income against the backdrop of policy rate hikes. In April 2025, the group made L&F Asset Finance a consolidated subsidiary, driving business expansion into the real estate-secured lending field.
Recent Overview
Profit increased for the fifth consecutive fiscal year, driven by rising interest rates, the L&F acquisition contribution, and lower credit costs.
In FY2026 (ending March 2026), ordinary income rose 22.9% year on year to ¥490,724 million, ordinary profit increased 26.2% to ¥155,018 million, and profit attributable to owners of parent grew 28.6% to ¥106,523 million, marking the fifth consecutive fiscal year of profit growth. Interest income on fund management expanded 29.5% to ¥355,137 million, driven by increases in loan interest income (¥269,341 million) and interest on deposits with banks (¥31,732 million). On the other hand, funding costs also rose 43.4% to ¥94,874 million due to an increase in interest paid on deposits (¥57,731 million). Other operating expenses expanded 29.4% to ¥58,178 million due to bond portfolio rebalancing and losses on sale of investment trusts, but net unrealized gains on other securities improved significantly from ¥44,498 million to ¥123,229 million. The consolidation of L&F Asset Finance (acquisition cost of ¥54,485 million) also contributed to earnings (contributing ¥4.9 billion after amortization of goodwill, etc.). The company conducted share buybacks (¥41,754 million), increasing treasury shares held at fiscal year-end to 33,138,582 shares. For FY2027 (ending March 2027), the company plans ordinary profit of ¥191,500 million (up 23.5%), net profit of ¥129,000 million (up 21.1%), ROE of 9.0%, and a dividend of ¥47.
Key Products
Growth Drivers
- Increased domestic deposit and loan interest income driven by policy rate hikes (combined loan yield for 3 banks of 1.35%, up 0.28 percentage points year on year)
- Expansion of loan balances through enhanced solution-based sales (combined period-end balance for 3 banks of ¥17,547.3 billion, up ¥725.7 billion from the prior fiscal year-end)
- Growth in corporate fee and commission income centered on syndicated loan fees (combined ¥47,099 million for 3 banks, up ¥2,467 million)
- Business expansion into real estate-secured lending through consolidation of L&F Asset Finance as a subsidiary (contribution of ¥4.9 billion)
- Improvement in securities valuation gains/losses from sales of investment trusts with lower investment efficiency (net unrealized gains on other securities of ¥123,229 million)
- Maintenance of low credit-related costs (combined ¥7,418 million for 3 banks, non-performing loan ratio of 1.2%)
- Expansion of investment-type product balances for individuals (group total of ¥3,186.2 billion, up ¥304.7 billion from the prior fiscal year-end)
- Improvement in earnings per share through continued share buybacks (EPS of ¥94.02, up 31.3% year on year)
Risks
- Impact on net interest income from changes in domestic and international monetary policy and interest rate trends (risk of a sharp increase in deposit interest expense)
- Risk of regional economic contraction due to ongoing population decline and aging
- Deterioration in credit risk due to sudden changes in global political and economic conditions
- Upward pressure on operating expenses, including rising personnel costs from base salary increases (combined operating expenses of ¥134,234 million for 3 banks)
- Risk of increased other operating expenses from bond portfolio rebalancing and losses on investment trust write-downs (¥58,178 million in the current fiscal year)
- Goodwill impairment risk related to the integration of L&F Asset Finance and associated goodwill (¥7,406 million)
- Constraints on capital management due to a decline in the capital adequacy ratio (total capital adequacy ratio of 14.94%, down 0.73 percentage points from the prior fiscal year-end)
- Impact on gains/losses related to equity holdings from the reduction of policy-held shares
Last updated: June 17, 2026