Key insights
- SBI Holdings reported record FY2025 profits, driven by AI and on-chain finance initiatives. While SBI's ROE significantly outperformed major US and Japanese financial institutions, its stock price has faced recent pressure. The report highlights the increasing importance of technology and innovation in the financial sector, but the direct impact on US equities is limited given SBI's primary focus on the Japanese market. The negative influence reflects potential competitive pressure on US firms to innovate.
SBI Holdings Inc. (TYO:8473) presented its fiscal year 2025 results on May 1, 2026, showcasing record-breaking financial performance that significantly exceeded the company’s medium-term targets. The Japanese financial conglomerate reported profit attributable to owners surging 163.7% year-over-year to JPY 427.6 billion, while achieving a return on equity of 28%—nearly double its FY2028 target of 15% and substantially above major U.S. financial institutions like JPMorgan Chase (16.69%) and Goldman Sachs (14.91%).
The presentation outlined an ambitious strategic transformation centered on three key pillars: comprehensive AI-driven operations, pioneering on-chain finance services, and integration of a neo-media ecosystem. Despite the strong earnings, the company’s stock has faced recent pressure, trading at JPY 3,071 as of May 8, down from its 52-week high of JPY 3,866.
SBI Holdings delivered exceptional consolidated results for the fiscal year ended March 31, 2026, with revenue reaching a record JPY 1,896.6 billion, representing 31.4% year-over-year growth. As illustrated in the following comprehensive financial comparison, the company achieved record highs across all major metrics.
Pre-tax profit climbed 83% to JPY 516.7 billion, exceeding the JPY 500 billion target established in the company’s medium-term vision announced in May 2025. The 28% ROE significantly outpaced the average for Tokyo Stock Exchange-listed banks (7.25%) and securities firms (10.33%), positioning SBI as a standout performer in Japan’s financial sector.
The company’s competitive advantage becomes even more apparent when compared directly with major Japanese securities groups, as shown in the following industry comparison.
SBI’s profit before income tax expense of JPY 427.6 billion represented 163.7% growth, far exceeding Nomura Holdings’ 6.3% increase and Daiwa Securities Group’s 13.5% gain. The company’s ROE of 28% was nearly triple that of its closest competitor, demonstrating superior capital efficiency and profitability.
The company’s performance was broad-based across its five business segments, with particularly strong results in Financial Services and Next Generation businesses. The following segment breakdown illustrates the diversified revenue and profit growth.
The Financial Services Business generated revenue of JPY 1,582.5 billion, up 34.8% year-over-year, while pre-tax profit more than doubled to JPY 425.0 billion (+115.4%). This segment, encompassing securities, banking, and insurance operations, remains the primary profit driver for the group.
Notably, the Next Generation Business achieved a dramatic turnaround, swinging from a JPY 9.9 billion loss in FY2024 to a JPY 22.0 billion profit in FY2025, while revenue surged 83.2% to JPY 56.2 billion. This segment includes emerging ventures in biotechnology, digital platforms, and new financial services.
The company rewarded shareholders with increased returns, as demonstrated in the following dividend history chart.
SBI announced an annual dividend of JPY 95 per share for FY2025, representing a JPY 10 increase from the prior year. This marks the 26th consecutive year of dividend payments, with the company also implementing approximately JPY 50 billion in share buybacks during the fiscal year. The total payout ratio stood at 26.1%, providing room for continued dividend growth while maintaining capital for strategic investments.
SBI Securities, the group’s flagship brokerage operation, achieved record consolidated results under J-GAAP with operating revenue of JPY 284.6 billion, up 19.1% year-over-year. Despite incurring extraordinary losses of approximately JPY 19.5 billion related to unauthorized account access and reserve provisions, the subsidiary posted ordinary income of JPY 90.5 billion, an 18.1% increase.
The company’s customer acquisition strategy has proven highly successful, as illustrated in the following account growth comparison.
SBI Group surpassed 16 million securities accounts as of May 1, 2026, becoming the first in the Japanese industry to reach this milestone. The compound annual growth rate of 13.4% from March 2009 to March 2026 far exceeded competitors Nomura (1.8% CAGR) and SMBC Nikko (3.0% CAGR). The company’s "ZERO Revolution" initiative, which eliminated online domestic stock trading fees beginning September 30, 2023, accelerated account openings significantly.
Assets under management have grown in tandem with account numbers, as shown in the following AUM progression chart.
The securities business AUM exceeded JPY 66 trillion by the end of FY2025, representing 31.9% year-over-year growth. Remarkably, AUM approximately doubled in just two and a half years following the launch of the ZERO Revolution. The company has set ambitious targets of JPY 100 trillion by March 31, 2029, positioning itself to challenge Rakuten Securities’ current JPY 50.3 trillion in AUM.
SBI Shinsei Bank, consolidated in December 2021, contributed significantly to group results with pre-tax profit of JPY 122.1 billion under J-GAAP, up 22% year-over-year and marking record highs across all major metrics since the bank’s establishment in 2000. Total deposits reached JPY 17.3 trillion with 4.33 million accounts, while operating assets expanded to JPY 18.0 trillion.
The presentation outlined three strategic objectives guided by what the company terms "strategic intuition," aimed at achieving sustainable growth ahead of its 30th anniversary in FY2028.
The first objective focuses on implementing a complete AI-driven transformation across the entire SBI Group under rapid top-down decision-making. The company cited JPMorgan Chase’s September 2025 announcement of its AI Blueprint as a model, which aims to transform the bank into the "world’s first fully AI-powered megabank" with potential workforce reductions of around 10% in operations and customer service departments.
The second strategic pillar emphasizes organizational transformation toward on-chain finance, positioning SBI to provide next-generation financial services ahead of global competitors. This initiative centers on the development and deployment of stablecoins and blockchain-based financial infrastructure.
The third objective involves developing and integrating a neo-media ecosystem into the existing financial and digital space ecosystems to dramatically expand the group’s customer base both domestically and globally.
SBI is advancing a comprehensive on-chain finance strategy through multiple initiatives, including the joint development of JPYSC, a yen-pegged stablecoin, and Strium, a specialized Layer 1 blockchain for financial assets.
JPYSC represents Japan’s first "trust-type" electronic payment instrument, issued by SBI Shinsei Trust Bank without the JPY 1 million remittance and holding limits imposed on conventional stablecoins. The company is targeting a launch as early as the first quarter of FY2026 for domestic and international distribution.
Strium Network is designed specifically for on-chain trading of crypto assets, tokenized stocks, and real-world asset (RWA)-linked financial products, with 24/7/365 operation enabling lag-free price formation and AI agent trading capabilities.
In March 2026, SBI VC Trade launched a USDC lending service with an initial annual rate of 10%, significantly exceeding the 0.01%-4% offered by traditional U.S. dollar foreign currency time deposits. The company plans to extend similar services to JPYSC at annual rates of 1-3% following its launch.
SBI announced a strategic memorandum of understanding with Visa on May 1, 2026, to collaborate in the digital finance space, as illustrated in the following partnership framework.
The collaboration aims to enhance Visa’s stablecoin payment network through utilization of USDC and JPYSC for credit card settlements and payments. SBI VC Trade and Aplus will issue an SBI VISA Crypto Card allowing customers to accumulate crypto assets, while SBI expects significant increases in account numbers and foreign exchange earnings through expanded cross-currency settlements.
The company is also pursuing vertical integration in digital finance through its partnership with Startale Group, developing infrastructure across customer interfaces, stablecoins, wallets, exchanges, tokenization, development tools, and blockchain layers. This comprehensive approach aims to provide end-to-end control and efficiency in digital financial services.
SBI has established SBI NEO MEDIA HOLDINGS to function as a "house agency" promoting products and services across the group while building a content-driven customer acquisition engine. The company has announced partnerships with 18 constituent companies as of March 2026, including gumi, TWIN PLANET, CoinPost, Ridge-i, and Tokyu Fudosan Holdings, with three to four additional companies expected to join by the SBI Neo-Media Summit scheduled for May 19, 2026.
The strategy envisions integrating media functions into "SBI CORE," a super app that will centrally integrate financial products and services from across the group, as shown in the following conceptual interface.
The super app, targeting launch next spring for group customers, will utilize AI agents to provide personalized financial services while incorporating media content to enhance engagement. The platform aims to leverage data from over 82 million financial customers across the SBI Group to deliver optimized experiences and drive lifetime value.
SBI has established a JPY 100 billion SBI Neo Content Fund, with the first close scheduled for the end of June 2026. Tokyu Fudosan Holdings announced a JPY 5 billion investment as the first limited partner from a business corporation. The fund will invest in video, music, publishing, media, advertising, content, and intellectual property, with particular focus on manga, anime, and games aligned with Japan’s Creative Industries Division priorities.
SBI has set ambitious medium-term targets across its busin