Rakuten Bank (5838) investor relations material

Executive summary

• Achieved record-high Q1 profits, with ordinary income rising 36.3% YoY to ¥78,425 million, driven by strong growth in deposit balances, assets under management, and higher interest and fee income, while investing in customer base expansion.

• Number of bank accounts reached 18.46 million (+8.1% YoY), with main accounts at 6.0 million (+7.7% YoY), and total deposit balance at ¥13,365,606 million (+13.9% YoY).

• Launched new digital annuity insurance product and enhanced digital banking services, with multiple customer campaigns contributing to business expansion and engagement.

Financial highlights

• Q1 FY2026 ordinary income: ¥78,425 million (+36.3% YoY); ordinary profit: ¥30,209 million (+26.1% YoY); net income: ¥20,965 million (+24.5% YoY).

• Excluding reorganization costs, ordinary profit rose +33.1% YoY and net income +31.3% YoY.

• Interest income grew by ¥19,482 million YoY to ¥63,095 million (+44.6% YoY), non-interest income +10.6% YoY, with fees and commissions income up ¥1,553 million to ¥13,521 million (+12.9% YoY).

• General and administrative expenses increased +28.5% YoY, but G&A expense ratio (OHR) improved to 31.5% (-0.8pts YoY).

• Profit per share was ¥120.14, up from ¥96.48 a year earlier.

Outlook and guidance

• Full-year FY2026 forecast revised upward: ordinary income ¥343,456 million (+34.3% YoY), ordinary profit ¥125,780 million (+22.0% YoY), net income ¥88,145 million (+20.6% YoY), profit per share ¥505.10.

• Synergy initiatives from FinTech reorganization expected to deliver ¥85 billion+ in annual profit by FY2029.

• Dividend forecast remains at ¥0.00 per share, with guidance revised upward based on recent trends.