Sony Financial Group (8729) investor relations material

Executive summary

• Group consolidated adjusted net income for FY25 reached ¥105.1 billion, up 71% year-over-year, driven by strong life and non-life insurance business performance.

• Ordinary revenues rose 9.6% year-over-year to ¥2,871.0 billion, driven by growth in life insurance, non-life insurance, and banking segments.

• Ordinary profit surged 88.4% year-over-year to ¥84.5 billion, mainly from life and non-life insurance, while banking profit declined.

• Profit attributable to owners of the parent fell 29.6% year-over-year to ¥55.4 billion, reflecting lower comprehensive income.

• FY26 adjusted net income is forecast at ¥110.0 billion, a 5% increase, with growth expected in banking and non-life insurance, while life insurance remains flat.

Financial highlights

• FY25 group consolidated ESR was 177%, a 12pt decrease from FY24, reflecting capital management amid interest rate hikes.

• Adjusted ROE for FY25 was 10.6%.

• Total assets increased 1.9% year-over-year to ¥23,807.1 billion; securities holdings rose 5.9% while loans decreased 1.8%.

• Total net assets declined 6.0% to ¥629.2 billion, with net unrealized losses on available-for-sale securities worsening by ¥28.2 billion.

• Ordinary revenues under J-GAAP rose 9.6% year-over-year to ¥2,871.0 billion; ordinary profit increased 88.4% to ¥84.5 billion.

Outlook and guidance

• FY26 adjusted net income forecast is ¥110.0 billion (+5% YoY), with banking and non-life insurance expected to drive growth.

• For FY2027 (ending March 31, 2027), a loss before income taxes of ¥20.0 billion and a loss attributable to owners of the parent of ¥16.0 billion are forecast under IFRS.

• Annual dividend of ¥8.0 per share is planned despite the projected loss.

• The company will adopt IFRS from FY2027 to enhance international comparability.

• Dividend payout ratio guideline remains at 40–50% of IFRS adjusted net income.