ENVALITH
SBIアルヒ株式会社 logo

SBI ARUHI Corporation

7198・Prime Market・Other Financing Business

Official website
SBIアルヒ株式会社 logo
SBI ARUHI Corporation7198

Business

SBI ARUHI Co., Ltd. is a housing finance-focused group operating a mortgage banking business centered on home loan origination (loan execution) and servicing (loan collection management). With its flagship product "Flat 35" as well as a diverse product lineup including variable-rate mortgages, bank agency products, real estate secured loans, and leaseback services, the company provides housing finance services to individual customers and real estate businesses through 90 locations nationwide (75 franchise stores, 14 directly-operated stores and others, and 1 other) and non-face-to-face channels. The company has SBI Holdings as its parent company and holds six subsidiaries including SBI Estate Finance, SBI Smile, and SBI Credit Guarantee. Operating revenue for FY2026 (ending March 2026) was ¥25,086 million.

Business Model

By transferring and securitizing home loan receivables to entities such as the Japan Housing Finance Agency after loan execution, the company minimizes credit risk and interest rate risk while combining flow revenue in the form of origination fees with stock revenue accumulated through servicing fees (recurring revenue). In addition, asset revenue such as interest income from SBI Estate Finance's real estate secured loans and gains on sale from SBI Smile's leaseback business are added, forming a three-layered revenue model.

Company Strengths

In FY2026 (ending March 2026), the company's share of Flat 35 loan execution volume was 27.7%, maintaining the No.1 position among all participating financial institutions for 16 consecutive years from FY2010 through FY2025. Built on the basic agreement for the sale and purchase of home loan receivables and the servicing/collection business outsourcing agreement with the Japan Housing Finance Agency, this long track record forms a barrier to entry.

The company operates a nationwide network of 90 locations, comprising 75 franchise (FC) stores, 14 directly-operated stores and other locations, and 1 other location, building a sales structure that integrates real (in-person) channels with non-face-to-face channels. This is combined with wholesale sales activities targeting real estate businesses, securing diverse customer touchpoints. In April 2026, a dedicated education and training department was newly established to maintain and improve channel quality.

Following the acquisition of servicing operations from multiple companies in the previous fiscal year, the managed balance expanded, and recurring revenue in FY2026 (ending March 2026) reached ¥8,900 million (up 17.8% year on year). Servicing fees, which accrue continuously in line with home loan balances, represent stock-type revenue that is less susceptible to market fluctuations, contributing to revenue stability.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved higher revenue and higher income, with operating revenue of ¥25,086 million (up 12.5% year on year) and income before income tax of ¥2,779 million (up 14.5% year on year), but net income attributable to owners of the parent declined to ¥1,802 million (down 5.4% year on year). The main cause was that income tax expense doubled from ¥530 million to ¥1,000 million, a reaction to a temporary decrease in income tax expense in the previous fiscal year associated with group restructuring, and underlying business earning power is improving. However, compared with net income of ¥4,239 million in FY2022 (ended March 2022), the level remains significantly depressed, and a full recovery in profit levels will take time.

As an external factor, the shift in demand toward fixed-rate products amid rising interest rates has been pushing up the number of Flat 35 loan originations, meaning that the current revenue expansion depends heavily on market conditions. On the other hand, the number of loan originations for variable-rate products has been sluggish, and origination-related revenue decreased by 1.3% year on year due to a decline in revenue related to the securitization of loan receivables amid rising interest rates. It is necessary to closely monitor the impact on the revenue structure if the interest rate environment changes, and a further increase in the proportion of stock-type (recurring) revenue will be key to stabilizing earnings.

At the end of FY2026 (ending March 2026), operating loans receivable expanded rapidly to ¥132,487 million (up ¥20,510 million from the end of the previous fiscal year), and to fund this, interest-bearing debt increased significantly, with borrowings of ¥120,313 million and bonds payable of ¥11,377 million. Due to the rise in funding interest rates, financial expenses increased 32.1% from ¥4,649 million to ¥6,141 million, and there is a risk that rising funding costs amid future interest rate hikes could squeeze profits. The ratio of equity attributable to owners of the parent declined from 20.4% to 18.4%, and the continuing trend of expanding financial leverage requires ongoing monitoring.

Growth Strategy

Three pillars of strategy: deepening the Flat 35 business, building up recurring revenue, and maximizing group synergies

The company aims to expand the number of loan executions by broadening its product lineup, including Flat 50, Pair Loan, and Kosodate Plus (now also applicable to refinancing loans). It aims to improve business speed and productivity—and thereby profitability—through the introduction of a web application system, promotion of sales DX, and active use of AI. In FY2026 (ending March 2026), the number of loan executions exceeded the previous fiscal year's results.

In the guarantee business jointly funded with the SBI Group, the company is accelerating the expansion of home loan guarantee services to financial institutions nationwide by leveraging SBI Group resources in addition to its own home loans, thereby building a revenue base to support medium- to long-term growth. Recurring revenue reached ¥8,900 million in FY2026 (ending March 2026), up 17.8% year on year, and continues to expand.

The company is maximizing group synergies by strengthening sales of SBI Estate Finance's purchase fund loans for real estate operators and its home sale support loans, among other products, through FC stores and directly operated stores. Asset and other revenue reached ¥6,689 million in FY2026 (ending March 2026), up 30.7% year on year, rapidly expanding, and the effects of group collaboration are becoming evident.

The company has strengthened its servicing capabilities through the full consolidation of Yuryo Jutaku Loan Co., Ltd. (newly consolidated in FY2026, ending March 2026). Building on the previous fiscal year's track record of acquiring servicing businesses from multiple companies, the company will continue to expand its business foundation through M&A. The increase in servicing fee revenue is directly contributing to the expansion of recurring revenue.

Last updated: July 19, 2026