Tokai Tokyo Financial Holdings sets sights on growth despite profit dip

Tokai Tokyo Financial Holdings is actively pursuing its "Beyond Our Limits" five-year plan, targeting a 12% ROE and 12 trillion yen in assets under management by March 2027. For the first half of the fiscal year ending March 2026, the company reported an annualized ROE of 7% and assets under management of 12.7 trillion yen, already surpassing its overall target for assets under management. However, ordinary profit for the same period was 7.108 bn yen, a decrease from the previous year's 15.120 bn yen. The company noted a delay in expanding its customer base due to slower Powerful Partners collaborations and digital business monetization.

Key strategic focuses include strengthening financial capabilities through diversified products and enhanced human resources, alongside an "unprecedented" focus on digital transformation. The company is keen on developing its Wealth Management Company (WMC) and Financial Wellness Company (FWC) businesses, aiming to enhance recurring revenue and improve revenue stream stability. Challenges include improving ordinary profit for individual sales divisions, which saw a decline in the first half of the fiscal year ending March 2026.

Tokai Tokyo Financial Holdings plans to continue capital strengthening through strategic investments and asset sales, while also emphasizing shareholder returns with an interim dividend of 55 yen per share, comprising an ordinary dividend of 14 yen per share and a special dividend of 8 yen per share. The company aims for ROIC of 12% by generating synergies from 30 bn yen to 50 bn yen in planned investments.