AEON Financial Service Co.,Ltd.
8570・Prime Market・Other Financing Business
Domestic Retail
Domestic retail financial services business for individuals, centered on AEON Bank
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating Revenue | ¥66,961 million (Q1 FY2027, ending March 2027) | ¥59,830 million (Q1 FY2026, ending March 2026) | ↑ |
| Operating Profit | ¥1,514 million (Q1 FY2027, ending March 2027) | −¥706 million (Q1 FY2026, ending March 2026) | ↑ |
| Shopping Revolving & Installment receivables balance | ¥403,387 million (end of May 2026) | ¥395,180 million (end of February 2026, start of fiscal year) | ↑ |
| Cashing receivables balance | ¥438,987 million (end of May 2026) | ¥435,377 million (end of February 2026, start of fiscal year) | ↑ |
| AEON Bank deposit balance | ¥5,426,021 million (end of May 2026) | ¥5,482,096 million (end of February 2026) | ↓ |
| Residential housing loan balance (before receivables securitization) | ¥2,932,502 million (end of May 2026) | ¥2,911,788 million (end of February 2026) | ↑ |
| Number of active domestic IDs | 40.3 million (end of May 2026) | 39.25 million (end of February 2026) | ↑ |
Business Details
This segment provides banking (AEON Bank), insurance business, and various loans primarily to individual customers. It operates Shopping Revolving & Installment Payments, Card Cashing, housing loans, Asset Formation Services, and other offerings, leveraging customer touchpoints through the AEON Group store network as its strength. Due to the increase in the Shopping Revolving fee rate and the expansion of loan interest income and securities investment income associated with rising interest rates, the segment turned to increased revenue and profit in the first quarter of FY2027 (ending March 2027).
Recent Overview
Turned to increased revenue and profit due to the Shopping Revolving fee revision and rising interest rate effects
In the first quarter of FY2027 (ending March 2027) (March to May 2026), the Domestic Retail business recorded operating revenue of ¥66,961 million (up 11.9% year on year) and operating profit of ¥1,514 million (up ¥2,221 million year on year), turning profitable. The main factors were improved profitability from the increase in the Shopping Revolving fee rate, as well as the expansion of loan interest income and securities investment income associated with rising interest rates. On the other hand, AEON Bank's deposit balance decreased by ¥56,075 million from the start of the fiscal year. The renewal of the credit card core system was carried out as originally planned in June 2026 and has commenced operation.
Key Products
Growth Drivers
- Improved profitability from the increase in the Shopping Revolving fee rate (for charges billed from December 2, 2025) and expansion of the revolving/installment receivables balance through the enhanced "Later Installment Payment" service
- Expansion of loan interest income and securities investment income amid rising interest rates driven by the Bank of Japan's monetary policy normalization
- Capturing demand from younger generations and high-value properties by extending the maximum housing loan term to 50 years (residential housing loan balance of ¥2,932,502 million)
- Strengthened customer touchpoints and expanded ID membership base through functional integration into AEON Pay and app renewal (40.3 million active domestic IDs)
- Expanded sales of Asset Formation Services through NISA campaigns and enhanced face-to-face consultations
Risks
- Risk that further increases in deposit interest and financial expenses associated with the Bank of Japan's monetary policy normalization will pressure profits
- Risk of sluggish usage per customer and slowing receivables balance growth due to continued cost-conscious consumer behavior amid rising prices
- Costs of strengthening AML/CFT management systems and reputational recovery risk related to the Financial Services Agency's business improvement order (December 2024) against AEON Bank
- System migration risk associated with the credit card core system renewal (operational from June 2026) and ensuring stable operation post-migration
- Continued risk of fraudulent credit card use due to increasingly sophisticated cybercrime such as phishing scams
Last updated: May 19, 2026