Seven Bank, Ltd.

Business Details

Operates an ATM network (28,536 units as of end-March 2026) that runs in principle 24 hours a day, 365 days a year, centered on Seven-Eleven and other stores, providing services to 696 partner financial institutions. While ATM fee income remains the main revenue source, the segment is also promoting retail banking services such as retail deposits, loans, and deferred payment services, along with a service platform strategy through "+Connect". Ordinary income for FY2026 (ending March 2026) was ¥146,769 million, and ordinary profit was ¥27,172 million.

Recent Overview

Revenue increased on higher ATM transaction volume, but ordinary profit declined slightly due to higher depreciation following completion of the 4th generation ATM replacement

In FY2026 (ending March 2026), total ATM transactions expanded to 1,122 million (up 3.0% year on year), supported by steady transaction volumes at deposit-taking financial institutions and solid growth in cash top-up transactions for cashless payments, and ATM acceptance fees increased to ¥116,475 million (up 2.4% year on year). On the other hand, operating expenses increased due to higher depreciation associated with the completion of the replacement of all ATMs with 4th generation units, a process that had been underway since 2019, and segment ordinary profit declined slightly to ¥27,172 million from ¥27,226 million in the prior period. The retail loan balance continued its high growth, reaching ¥79.2 billion (up 30.8% year on year).

Key Products

Growth Drivers

• Increase in total ATM transactions: cash top-up transactions for cashless payments remained solid, achieving 1,122 million transactions in FY2026 (ending March 2026) (up 3.0% year on year)
• Full-scale rollout of the service platform strategy leveraging new functions such as identity verification and scanning, following the completion of the replacement of all ATMs with 4th generation units (end of March 2025)
• High growth in retail loan balances: ¥79.2 billion as of end of March 2026 (up 30.8% year on year)
• Increase in the number of retail deposit accounts: 3,500 thousand accounts as of end of March 2026 (up 4.1% year on year) and retail deposit balances of ¥652.4 billion (up 7.3%)
• Increase in investment income amid a rising interest rate environment: loan interest income expanded from ¥9,672 million in the prior period to ¥12,473 million in the current period (on a consolidated basis)
• High growth of the Seven Bank Deferred Payment Service: transaction volume of ¥103.5 billion (up 35.5% year on year)
• Expansion in the number of installed ATMs: 28,536 units as of end of March 2026 (up 1.9% year on year) and an increase in partner financial institutions (696 institutions)

Risks

• Medium- to long-term risk of declining ATM transaction volumes due to the progress of cashless payments
• Increase in funding costs associated with rising prices and interest rates (deposit interest expense increased from ¥517 million in the prior period to ¥1,833 million in the current period)
• Profit pressure from continued high levels of depreciation and operating expenses even after completion of the 4th generation ATM replacement
• Risk of impairment losses: ¥459 million in impairment losses was recorded in the domestic business segment in the current period
• Impact on management policy from changes in shareholder composition (Seven & i Holdings ceasing to be the parent company) associated with the capital and business alliance with Itochu Corporation
• Increase in provision for allowance for doubtful accounts: ¥4,316 million in the current period (¥2,887 million in the prior period), indicating a trend of expanding credit costs