SBI Q1 FY2027: Pretax Profit Soars 150% on PE Investment Boom

SBI’s revenue for the April-to-June quarter climbed 28.8% to ¥571.0 billion. Pretax profit soared 149.9% to ¥225.8 billion, while net income attributable to shareholders rose 75.0% to ¥148.1 billion. The PE Investment business was the primary earnings driver, with revenue tripling to ¥136.1 billion and pretax profit more than quadrupling to ¥119.9 billion, accounting for 53% of group pretax profit. Financial Services revenue rose 5.2% to ¥404.8 billion, and pretax profit jumped 59.5% to ¥116.0 billion as margins improved. Asset Management and Next-Generation Businesses also grew strongly. The Crypto Asset Business remained unprofitable. Reflecting the strong quarter, SBI hiked its interim dividend per share forecast to ¥30 (post-split) from ¥10, and set an annual target above the prior year’s ¥95 per share.

The Financial Services segment, which includes securities, banking, and insurance, posted revenue of ¥404.8 billion (+5.2% YoY) and pretax profit of ¥116.0 billion (+59.5%). Asset Management revenue surged 45.5% to ¥12.5 billion, with pretax profit of ¥2.7 billion. The PE Investment segment was the standout, with revenue of ¥136.1 billion (+223.0%) and pretax profit of ¥119.9 billion (+328.0%), yielding an 88.2% profit margin. The Crypto Asset Business revenue rose 25.9% to ¥13.9 billion, but the segment posted a pretax loss of ¥1.4 billion. Next-Generation Businesses, which include 5-ALA, Web3, and renewables, nearly doubled revenue to ¥13.2 billion and pretax profit to ¥3.6 billion.

PE Investment revenue hit ¥136.1 billion (+223.0% YoY) and pretax profit reached ¥119.9 billion (+328.0%), making up 53% of SBI’s total pretax profit. The unit invests in IT, fintech, AI, blockchain, and biotech startups globally. Buoyant equity markets lifted valuation gains, while some portfolio companies completed IPOs or trade sales, realizing substantial profits. But the segment’s heavy reliance on mark-to-market accounting introduces significant earnings volatility, and sustaining this performance will be challenging if markets correct.

Total assets swelled to ¥39,187.1 billion, up ¥896.3 billion from March 2026. Cash and equivalents declined to ¥6,142.6 billion, while operating cash flow was ¥269.5 billion. Investing cash flows saw an outflow of ¥661.6 billion mainly from securities purchases, and financing activities generated ¥139.1 billion from debt issuance and borrowings. SBI raised its interim dividend guidance to ¥30 per share (post-split) from the prior ¥10 forecast, and aims to pay an annual dividend exceeding last year’s ¥95 per share. The parent-only equity ratio inched up to 4.8% from 4.7%.

SBI does not provide full-year earnings forecasts due to high market sensitivity across its financial businesses. The PE investment segment, in particular, could see a sharp profit reversal in a downturn. The Crypto Asset Business, while positioned for growth, continued to bleed red ink with a pretax loss of ¥1.4 billion and no clear timeline to profitability. Rising interest rates and currency swings also pose headwinds for the securities and banking units. Amid heightened uncertainty, managing portfolio risk and diversifying stable income sources remain key priorities.