SBI Holdings, Inc. (SBHGF) Q4 2025 Earnings Call Transcript

2025-05-10 04:33:41 ET

SBI Holdings, Inc. (SBHGF)

Q4 2025 Earnings Conference Call

May 1, 2025, 10:30 PM ET

Company Participants

Yoshitaka Kitao - Chairman, President and CEO

Conference Call Participants

Presentation

Yoshitaka Kitao

Without further ado, we have about 170 pages of materials, so we will just skip some pages only of figures. We would like to finish this briefing in less than two hours. So it’s about the results announcement, but I know many of you are here for other purposes. But basically, this is the briefing of the results. So that’s what I’m going to talk about first.

So for FY 2024 consolidated results, the revenue, ¥1,443,733 million or up 19.3% year-on-year. By the way, our consolidated results are on the IFRS basis. So the pre-tax income was the ¥282,290 million or up 99.4%. And the net income for the period, ¥189,158 million up 66.5%. And the property attributable to owners of the company, ¥162,138 million up 85.8%. Our ROE exceeding significantly our target of 10%, reaching 12.8%. This is up 5.8 the percentage point. This is the comparison apple-to-apple among consolidated profits among major securities companies.

The Nomura is still ahead of us, but we are ahead of Daiwa Securities. It will be rather difficult, strange to talk about the winner or losers, but the other CNBC, NIKO and Mitsubishi UFJ numbers are shown here.

Now, by segment, the biggest segment, Financial Services Business, ¥1.2 trillion and we have the profits of more than 30% up with the ¥225,369 million. And the Asset Management business, the income of the ¥5 billion, the ¥447 million or up 12.5%. And the PE Investment business, which used to be the investment business. It’s just a name change.

And here, the other pre-tax income increased with ¥67.1 billion. And the other Crypto-Asset business, finally, we hit record highs, both for revenue and the other profit. The revenue is ¥80,797 million and the pre-tax income, ¥21,220 million or up 151.8%.

Next Gen business revenue hit the record high, but the pre-tax income is still in the red and the five other business is already operating in the black numbers, so they’re targeting at the IPO. As to the Next Gen business, when it comes to Web3 business, it’s still running in the red.

And the dividend, up ¥10 year-on-year and in the last year that we had, the 25th anniversary since the company’s founding, so ¥130 and for FY 2024, ¥140. The actual year is ¥170. Payout ratio is 31.7%.

Basically, a company’s shareholder return idea is as follows. This other Financial Services Business is growing relatively steadily in manner. And without the extraordinary factors such as gain in sales of subsidiary stocks, we set the total shareholder return ratio at 30% and the absolute amount will be ¥51.5 billion and minus ¥168.7 billion. These are the special factors and the result is 30.5%.

The shareholder benefits, as you can see here, it’s a very generous benefit for shareholders. The especially interesting part is this is what Asakura-san started to do. XRP. You can choose XRP or ¥5. If you have more than 1,000 shares for more than one year, then ¥8,000 or so. If not, ¥2,000. As a result, if you get XRP, then on the weighted average basis, because we provided XRP 5 times and then the value is now 7 times than the acquisition value. So it has produced very strong results.

So by segment, Financial Services Business, as I mentioned earlier, the revenue increased by about 10% and the pre-tax income ¥225,369 million or up 30%. In this segment, especially Banking business grew very steadily, up 34.6%....

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