SBI Holdings, Inc.

Business Details

This segment operates a diverse range of financial-related businesses centered on Securities-Related Business (SBI SECURITIES), Banking Business, and Insurance Business, both domestically and overseas. It encompasses SBI SECURITIES, SBI Shinsei Bank, SBI Sumishin Net Bank, SBI Insurance Group, and others, providing low-cost, highly convenient services based on a customer-centric philosophy. In FY2026 (ending March 2026), gain on sale of shares in an affiliate associated with the transfer of SBI Sumishin Net Bank shares and an increase in interest income from financial assets measured at amortized cost in the Banking Business drove substantial profit growth, making this the segment with the largest contribution to both revenue and profit for the Group as a whole.

Recent Overview

Profit before income tax expense more than doubled YoY, driven by gain on sale of SBI Sumishin Net Bank shares and increased interest income

In FY2026 (ending March 2026), gain on sale of shares in an affiliate associated with the transfer of SBI Sumishin Net Bank shares (approximately ¥141,600 million) and increased interest income from financial assets measured at amortized cost in the Banking Business were the primary drivers of substantial profit growth, with segment profit before income tax expense reaching ¥424,961 million (up 115.4% YoY). Revenue also expanded to ¥1,582,508 million (up 34.8% YoY). Note that SBI Savings Bank in South Korea transitioned from a consolidated subsidiary to an equity-method affiliate effective April 6, 2026, following the partial transfer of shares to Kyobo Life Insurance, and its contribution to consolidated revenue is expected to shrink going forward.

Key Products

Growth Drivers

• Increased interest income in the Banking Business amid the Bank of Japan's interest rate normalization (expansion of interest income from financial assets measured at amortized cost)
• Rapid increase in the number of accounts at SBI SECURITIES due to the "Zero Revolution" and offsetting of lost revenue through diversification of revenue sources
• Increase in corporate lending balance at SBI Shinsei Bank and expansion of fee income in overseas operations
• Increase in fund management income at SBI Sumishin Net Bank due to expanded mortgage lending and higher investment yields
• Steady increase in the number of policies in force at SBI Insurance Group

Risks

• Risk of fluctuation in securities-related revenue due to increased stock market volatility
• Uncertainty regarding the pace of additional interest rate hikes by the Bank of Japan (the Trump administration's tariff policy could constrain further rate hikes)
• Structural loss of commission revenue due to SBI SECURITIES' "Zero Revolution"
• Reduction in consolidated revenue contribution and uncertainty over the amount of gain on sale recognized following SBI Savings Bank's transition to an equity-method affiliate in South Korea
• Credit risk and foreign exchange risk in overseas financial businesses
• Financial burden associated with SBI Shinsei Bank's repayment of public funds (approximately ¥230.0 billion scheduled for full repayment on July 31, 2025)