Mebuki Financial Group raised its forecast for the year to March 2027, lifting expected net profit attributable to owners of the parent to ¥112.0bn from the ¥105.0bn it set on 5 August. Ordinary profit is now forecast at ¥163.0bn, up from ¥153.5bn. The revisions are 6.6% and 6.1%, and forecast earnings per share rise to ¥119.68 from ¥111.87.
The company's stated reason is the Bank of Japan's policy rate increase in September 2026. Mebuki said yields on loans and securities rose as a result, so net interest income, including loan interest and securities dividends and interest, should exceed its earlier forecast.
Where the extra income comes from
The earnings presentation breaks down the change in the combined bank forecast. Deposit-loan income is revised up by ¥3.0bn: yen loan interest adds ¥7.5bn, while yen deposit interest costs rise ¥5.5bn. Securities income adds ¥5.5bn, of which ¥3.5bn comes from wider margins after portfolio swaps and ¥2.0bn from higher interest on deposits at the Bank of Japan. Fee income adds ¥0.5bn. Expenses, securities trading gains and credit costs are unchanged.
The forecast assumes the domestic policy rate stays at 1.25% through the fiscal year, with no further move.
Half-year base and payout
Interim net profit attributable to owners was ¥59.2bn, against ¥43.8bn a year earlier, and interim ordinary profit was ¥86.1bn. The presentation puts that at 52.8% of the new full-year net profit target.
Mebuki also raised its forecast year-end dividend by ¥4 to ¥26, taking the annual dividend to ¥48 from the ¥44 previously forecast. It linked the increase to its policy of reaching a payout ratio of 40% or more by fiscal 2027. A buyback of up to ¥10bn, or 9mn shares, runs from 12 November to 21 December 2026.