Tokyo Kiraboshi Financial Group Q3 Net Margin Strength Reinforces Bullish Narratives

Q3 2026 earnings snapshot

Tokyo Kiraboshi Financial Group (TSE:7173) has put out its Q3 2026 numbers, with revenue at ¥38,566 million and basic EPS at ¥289.28, while on a trailing twelve month basis revenue sits at ¥153,999 million and EPS at ¥1,254.13. Over recent quarters, the group has seen revenue move from ¥40,183 million in Q4 2025 to ¥42,267 million in Q2 2026 and EPS shift from ¥339.31 to ¥434.74, setting up Q3 as another data point on how margins are holding up through the year. For investors, the key question now is how this earnings print fits with the improving net profit margin and what that signals for the sustainability of profitability.

See our full analysis for Tokyo Kiraboshi Financial Group.

With the latest figures on the table, the next step is to see how these margins and earnings trends line up with the prevailing narratives around Tokyo Kiraboshi Financial Group and where the story might be challenged by the numbers.

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TSE:7173 Revenue & Expenses Breakdown as at Feb 2026 24.6% net margin backs profit story On a trailing 12 month basis, Tokyo Kiraboshi booked ¥153,999 million in revenue and ¥37,934 million in net income, which works out to a 24.6% net profit margin compared with 19.5% a year earlier. What stands out for a bullish view is how this margin sits alongside trailing EPS growth of 37.2% and a five year earnings growth rate of 28.2% a year, which together point to profits keeping pace with the wider business:
Supporters can point to ¥37,934 million of net income over the last 12 months versus ¥30,033 million a year earlier as evidence that profitability has scaled with revenue rather than being purely cost driven. At the same time, Q3 2026 EPS of ¥289.28 fits into a trailing EPS figure of ¥1,254.13, so the latest quarter slots into a period where earnings growth has already been running at double digit rates. 📊 Read the full Tokyo Kiraboshi Financial Group Consensus Narrative. P/E of 8x and DCF fair value gap The shares trade on a P/E of 8x while the peer average is 15.3x and the broader Japanese banks average is 13.8x, and the current price of ¥10,070 sits below a DCF fair value estimate of ¥14,358.26, which implies a gap of about 29.9% to that modelled value. Supporters of a more optimistic stance often focus on this combination of lower multiples and higher modelled value, and the trailing numbers give them concrete reference points:
With trailing EPS at ¥1,254.13, the 8x P/E is built on earnings that grew 37.2% over the past year, so the low multiple is not being applied to a flat profit base. The same data set that underpins the DCF fair value of ¥14,358.26 also includes the 24.6% net margin and ¥153,999 million of revenue, so investors can compare the current ¥10,070 price directly with a model that uses the recent profitability profile. Loan quality metrics and 26% allowance Across the last few reported quarters, non performing loans ranged from ¥103,547 million in Q2 2025 to ¥87,148 million in Q2 2026, and the allowance for bad loans is described as 26%, which is flagged as a relatively low buffer against potential credit losses. Investors who are more cautious tend to focus on this credit angle, and the figures give them specific issues to weigh against the stronger profit and valuation picture:
Critics highlight that total loans have been in the ¥4.9 trillion to ¥5.1 trillion range over recent periods, with non performing loans still in the tens of billions of yen, so a 26% allowance may limit how much credit stress can be absorbed before it starts to affect earnings. At the same time, the reported 24.6% net margin and ¥37,934 million of trailing net income show that profitability has held alongside this loan profile, which some investors may see as reducing, but not removing, the importance of the 26% allowance level. Next Steps

Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on Tokyo Kiraboshi Financial Group’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.

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For all the strong profit metrics, the 26% allowance against non performing loans and multi trillion yen loan book leaves credit risk as a clear weak spot.

If that level of balance sheet risk feels uncomfortable, shift your focus to CTA_SCREENER_SOLID_BALANCE_SHEET to zero in on companies built on stronger financial cushions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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