SBI Shinsei Bank : Financial Documents Presentation Script of Investors' Meeting (4qfy25presentationscript260501e)

About this update from Sbi Shinsei Bank, Limited

This Script is made in Japanese and translated into English. The Japanese text is the original and the English text is for reference purposes. If there is any conflict or inconsistency between these two texts, the Japanese text shall prevail. SBI Shinsei Bank, Ltd.: FY2025 Full-Year Financial Results Presentation Script Date & Time: Friday, May 1, 2026, 2:30 p.m. – 3:30 p.m. Presenter: Eisuke Terasawa (Director, Chief Financial Officer) Tsuyoshi Miyake (Executive Officer, Group Deputy CFO) Format: Webinar — Advance registration required Today, I will first explain the highlights, followed by an overview of the financial results, covering the numerical performance. Third, I will explain the progress of the Medium-Term Management Plan after completing its first year. Fourth, I will explain the earnings forecast. In addition, this year the results briefing will be held in two sessions. The next session is scheduled for May 14, at which time our CEO, Mr. Kawashima, will provide an explanation focusing mainly on strategy. [Page 3] As an overall summary of the results, I will highlight three points. First, performance reached record highs. Total Revenue, Income before income taxes, and Net income attributable to owners of the parent company, all reached their highest levels to date. With respect to ROE, we have set an early target of achieving a double-digit level since relisting, and this target was achieved in FY2025. As for dividends, the amount was increased from the initial plan to 42 yen per share. Second is strengthening profitability. While steadily accumulating deposits and earning assets, we have worked to enhance profitability, and results are being seen in the widening interest rate spread between loans and deposits. Third is expanding revenue opportunities. In FY2025, we completed the repayment of public funds and relisting, and also raised capital through a public offering. Under these conditions, by leveraging our diversified business portfolio and generating synergies with the SBI Group, we were able to diversify revenue opportunities, which contributed to the increase in profit for the fiscal year. [Page 4] I will explain progress in strategy across three areas. SBI Hyper Deposits accounts with SBI Securities have increased both in number of accounts and balances since launch, contributing to an improvement in the liquidity deposit ratio. Under the Fourth Megabank concept, we are steadily providing various solutions to regional financial institutions. In IT systems, we have decided to introduce a next-generation banking system and are advancing plans for joint use with regional banks. In next-generation finance, we are preparing to offer stablecoins and tokenized deposits by leveraging SBI Shinsei Trust Bank within the Group. [Page 5] Total Revenue exceeded JPY300 billion, reaching a record high. Income before income taxes amounted to JPY122.1 billion, exceeding JPY100 billion and reaching a record high. Net income totaled JPY113.4 billion, exceeding the full-year plan of JPY100 billion and reaching a record high. Asset growth is steadily approaching the targets of the Medium-Term Management Plan. [Page 6] This page shows a year-on-year breakdown in profit and loss. Although expenses increased along with business expansion, the expense ratio improved. Net credit costs typically increase as loan assets expand; however, net credit costs improved on a year-on-year basis. As a special factor, income taxes decreased due to the increase in deferred tax assets. [Page 8] This page explains trends in net interest income. From the first quarter, net interest income expanded, supported by rising policy interest rates. At the gross level, despite increasing funding costs, we were able to expand interest income from interest-earning assets. [Page 9] This page shows the interest rate spread between loans and deposits. Policy rate hikes and contributions from SBI Hyper Deposits led to improvement in the spread. [Page 10] This page provides a detailed analysis of yen funding rates. Institutional deposit rates rose in line with market rates, while individual deposit rates remained subdued. Liquidity deposits increased, improving the liquidity deposit ratio. [Page 11] This page explains loan interest rate trends. Institutional loan rates rose with policy rate hikes. Pass-through to housing loans was limited; however, a base rate increase is planned in May. Approximately 75% of total loans are effectively floating-rate loans. [Page 12] Noninterest income increased overall. The breakdown is presented by broadly dividing it into two categories. In addition to items positioned as “stable earnings and organic growth”, the realization of diversified income opportunities contributed to the overall increase in profit. This includes income from the distribution of non-bank assets and exit gains from private equity investments. [Page 13] This page shows the status of origination and distribution, which is one of the Bankʼs strategies. For both bank assets and non-bank assets, both origination and distribution have been growing steadily on an upward trend. [Page 14] This page outlines expenses and the expense ratio. Expenses have been controlled relative to the growth in assets and revenues, resulting in an improvement in the expense ratio. The improvement in operating leverage reflects the gap between the growth in total revenue and the growth in expenses. [Page 15] Net credit costs declined in both specific and general provisions. In the non-bank business as well, net credit costs have been kept to a commensurate level with the sound expansion of assets. [Page 16] This page shows the capital position. Please note that the figures are preliminary. Risk-weighted assets have increased; however, capital has also increased due to profit accumulation and proceeds from the public offering, and consequently the capital adequacy ratio has improved. RORA has also improved to 1.23%. [Page 34] Income before income taxes for the current fiscal year is planned at JPY132.0 billion. This represents achievement ahead of schedule of the final-year KPI of the Medium-Term Management Plan. The dividend forecast is expected to remain at the same level as the revised prior-year dividend. [Page 35] Total revenue, consisting of “Revenue and gains”, has grown steadily for the last two years and is expected to continue this trend. By controlling expenses and credit costs, Income before income taxes is planned to reach JPY132.0 billion. ROE has steadily improved since joining the SBI Group, achieving 10% ahead of schedule. Further ROE improvement is targeted over the medium to long term. This concludes my presentation. 【Disclaimer】 This material has been prepared solely for the purpose of presenting relevant information regarding SBI Shinsei Bank, Limited (the "Company"). This material does not constitute an offer to sell or the solicitation of an offer to buy any security in Japan, the United States or any other jurisdiction in which such offer or solicitation is prohibited. This material is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and neither the Company nor its advisors or representatives guarantee that the information contained in this material is accurate or complete. Subsequent developments may affect the information contained in this material, and neither the Company nor its advisors or representatives are under any obligation to update, revise or affirm the information herein based on events or circumstances after the date hereof. The information in this material is subject to change without prior notice. This material, in whole or in part, is confidential and must not be communicated or disclosed to any third party except with the prior written consent of the Company. This material includes forward-looking statements that express expectations of future results. These forward-looking statements include, but are not limited to, expressions such as “will”, “believe”, “expect”, “estimate”, “anticipate”, “plan”, “develop a strategy”, “project”, “forecast” or “have the potential” and other similar expressions that explain our future business activities, results, events and circumstances. Forward-looking statements are based on the intentions of our management based on the information that is available to them at the time of such statements. Therefore, these forward-looking statements are dependent on various risks and uncertainties, and actual results may significantly differ from the results expressed or implied in the forward-looking statements. Accordingly, you should not place undue reliance on the forward-looking statements. We are not under any obligation to change or correct the forward-looking statements according to new information, future events or other discoveries. This material contains statements as of the date stated on this material (or any other date separately specified herein), and neither the Company nor its advisors or representatives adopts a policy of nor assumes any responsibility for keeping such information updated. The information in this material in connection with or prepared by companies or third parties other than the Company and its affiliates is based on publicly available information and other information as cited, and the Company has not independently verified the accuracy or appropriateness of, and makes no materials with respect to, any information derived from such sources. The Companyʼs fiscal year-end is March 31. Unless otherwise specified or the context requires otherwise, the financial figures used in this material are for the Company on a consolidated basis and presented in accordance with accounting principles generally accepted in Japan, or Japanese GAAP

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