Rakuten Bank, Ltd. (TSE: 5838) told investors on August 6 that it is raising its consolidated earnings forecast for the year to March 2027. Projected ordinary revenue climbs to ¥343.5bn from ¥314.7bn, ordinary profit rises to ¥125.8bn from ¥115.6bn, and net profit attributable to parent shareholders increases to ¥88.1bn from ¥81.3bn, gains of 9.1%, 8.7% and 8.3% respectively. Forecast earnings per share move to ¥505.10 from ¥466.04.
| Metric | Previous forecast | Revised forecast | Change |
|---|---|---|---|
| Ordinary revenue | ¥314.7bn | ¥343.5bn | +9.1% |
| Ordinary profit | ¥115.6bn | ¥125.8bn | +8.7% |
| Net profit attributable to parent | ¥81.3bn | ¥88.1bn | +8.3% |
The bank attributed the upgrade to expanding fund-management income, chiefly interest on loans and on purchased monetary claims, plus more efficient operations as its balance sheet has grown. It said business was already running ahead of the assumptions built into its May 12 outlook, and named one factor as the main driver of the improved fund-management balance: the Bank of Japan's policy-rate increase in June.
The same-day first-quarter report gives an early look at that dynamic. Ordinary profit for April through June rose 26.1% year-on-year to ¥30.2bn and net profit rose 24.5% to ¥21.0bn, with interest income up ¥19.5bn to ¥63.1bn. Funding costs also rose, up ¥8.3bn to ¥19.3bn, after the bank raised ordinary deposit rates in February. Accounts reached 18.46 million and standalone deposits stood at ¥13.37tn at the end of June.
The revised outlook still carries no dividend for the year, unchanged from the bank's original forecast.