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Financial Overview of 13 Labor Banks in FY2025

The financial summary for the fiscal year ending in March 2026 has been compiled and is now available for review. The collective performance of the 13 Labor Banks shows some promising growth metrics, with notable increases in profits, deposits, and loan activity compared to the previous fiscal year.

Summary of Key Financial Metrics

For FY2025, the net income increased by 15 billion yen, marking a 5.32% rise compared to the last fiscal year, resulting in a total of 311 billion yen. In terms of deposits, including transferable deposits, the figure rose by 461 billion yen (0.20%), leading to an aggregate total of approximately 23.621 trillion yen. The lending portfolio also showed growth, with an increase of 3,675 billion yen (2.30%), bringing the total loans to around 16.311 trillion yen. However, the capital adequacy ratio saw a slight decrease of 0.15 percentage points, settling at 10.55%.

Profit and Loss Analysis

The operational income derived from fund utilization demonstrated growth, boosted by increases in loan interest, deposits, and securities. This segment saw an increase of 401 billion yen (15.77%). Meanwhile, the cost of funds significantly increased due to higher deposit interest rates, which surged by 295 billion yen (184.32%).

Service-related transaction revenues also saw positive movement with a 10 billion yen (4.43%) increase, benefiting from an uptick in loan-related fees. However, expenses in this category rose by 32 billion yen (6.16%), primarily due to hikes in premiums for group credit life insurance.

Additionally, other businesses experienced a 25 billion yen (17.92%) gain from rising profits linked to government bonds and similar securities. Yet, expenses in related areas surged by 142 billion yen (75.40%), impacted by losses from selling similar bonds. Overall, operational expenses increased by 44 billion yen (2.67%) due to multiple factors including salary hikes and increased costs associated with the operational framework of the online system supporting labor banks.

Overall operational profit declined by 82 billion yen (22.40%), bringing the total down to 286 billion yen.

Deposit Trends

Turning to deposit balances, there was a modest increase of 461 billion yen (0.20%) compared to the previous year, marking the total at around 23.621 trillion yen. Notably, liquid deposits saw a minimal decrease of 154 billion yen (0.17%), reflecting a balance of 8.891 trillion yen, while fixed deposits, including transferable ones, registered a modest growth of 615 billion yen (0.43%), increasing to 14.170 trillion yen.

Lending Trends

Loan balances exhibited a robust increase of 3,675 billion yen (2.30%), further consolidating at approximately 16.311 trillion yen. The loan-to-deposit ratio improved by 1.46 percentage points, reaching 70.73%.

Risk and Regulatory Framework

Under the Labor Bank Law and the Financial Reconstruction Law, the total amount of disclosed claims at the end of March 2026 rose by 63 billion yen (6.61%), totaling around 1.03 trillion yen. The overall credit balance's ratio slightly increased by 0.02 percentage points, marking 0.63%.

Key Rate Highlights

The loan interest rate improved by 0.17 percentage points, now at 1.36%, while the deposit interest rate climbed by 0.13 percentage points to 0.19%. The spread between loan and deposit rates grew by 0.02 percentage points, sitting at 0.43%. The overall funding spread saw a similar increment of 0.02 percentage points, totaling 0.28%.

This overview not only highlights the operational effectiveness of the labor banks but also underlines key market trends and challenges ahead for the financial industry.

For more information, please refer to the provided website for further details and supporting documents.

Contact Information

For inquiries regarding this report, please contact the Management Department of the General Incorporated Association, National Labor Bank Association at phone number 03-3295-0718.