Senshu Ikeda Holdings beats H1 forecasts, targets 01Bank profitability

Senshu Ikeda Holdings surpassed initial interest income forecasts in the first half of fiscal year 2025, driven by steady lending volume growth and better-than-anticipated yield improvements. Despite this progress, the company maintained its full-year forecasts due to potential major risk events in the second half. For FY2027, the company projects 01Bank to achieve a loan balance of JPY 160.0 billion and generate approximately JPY 2.0 billion in profit, becoming profitable within the next Medium-Term Business Plan period.

The company aims for an 8% ROE, actively discussing strategies to enhance profitability and address the gap from the current 6.1% target. In deposit strategy, Senshu Ikeda will focus on developing resonated products and leveraging BaaS partnerships to attract deposits, rather than engaging in interest rate competition. This approach is intended to mitigate individual deposit declines and grow corporate deposits.

Looking ahead, the company plans to selectively replace yen-denominated bonds within the period's profit and loss range, considering credit costs and overall financial performance. Senshu Ikeda views megabanks as a competitive threat and prioritizes collaborations with local businesses through BaaS to offer diverse services and expand its customer base.