Daishi Hokuetsu Financial Group, Inc. <7327> is seeing a sharp rebound after three days of declines. After the close of trading on the 27th, the company announced an upward revision to its numerical targets in its medium-term management plan (covering fiscal year ending March 2025 onward), which concludes in the fiscal year ending March 2027. The net profit target has been raised from 40 billion yen to 50 billion yen, and the consolidated ROE (return on equity) target has been increased from 7.5% or higher to 8.7% or higher, attracting buying interest. The revision reflects domestic market interest rates remaining higher than the levels assumed during the previous target revision in March 2025, as well as improvements in market operations revenue through risk asset buildup associated with the shift to the Foundation Internal Ratings-Based Approach and the review of the securities portfolio, along with the steady progress of the medium-term management plan, including in non-interest income areas.

Simultaneously, the company disclosed that its consolidated net profit for the fiscal year ending March 2026 appears to have landed at 42.1 billion yen (up 43.4% year-on-year), compared to the previous forecast of 36 billion yen. Non-interest income, centered on corporate service fees, performed strongly as the group leveraged its integrated consulting capabilities, and net interest income exceeded forecasts due to growth in loans. The year-end dividend will be 36 yen, an increase of 9 yen.

Source: MINKABU PRESS

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