The Chiba Bank,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥45.46B
• EPS: ¥62.50

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Chiba Bank (8331) reported FY2026 Q2 consolidated results under JGAAP with net income of ¥44.222 billion, up 17% YoY, indicating solid profit improvement despite limited line-item disclosure typical for banks. Operating income and ordinary income are both ¥64.395 billion in the dataset, suggesting core profit stability versus the prior year (YoY growth marked 0.0% for operating income), while bottom-line strength likely reflects improved below-the-line items such as credit costs or securities-related gains/losses. Using period-end equity as a proxy (¥1,231.679 billion), estimated ROE is approximately 3.6%, consistent with a bank-level DuPont of ROA (~0.21%) multiplied by leverage (~17x). The effective tax rate is estimated at ~27.2% (¥16.485 billion tax on ~¥60.707 billion pre-tax profit), indicating a normalizing tax burden. Balance sheet scale remains large with total assets of ¥20.944 trillion and liabilities of ¥20.486 trillion, resulting in a liabilities-to-equity ratio of ~16.6x, typical for regional banks. The reported equity ratio is listed as 0.0% in the dataset, but based on disclosed totals, equity/asset ratio is approximately 5.9%, consistent with a leveraged banking model. Cash flow items and working capital metrics are undisclosed in the feed (zeros indicate unreported), which is common for banks where cash flows fluctuate with balance sheet management and are less indicative of performance quality than earnings, credit costs, and capital ratios. Dividend data are not provided; therefore, payout and FCF coverage cannot be assessed from this dataset. EPS is disclosed at ¥62.50; back-solving implies roughly 708 million shares outstanding (estimate) given the reported net income. Profitability quality assessment is constrained by the absence of net interest income, net fees, or credit-cost disclosure, but headline YoY net income growth of 17% is a clear positive. Operating leverage cannot be precisely measured without revenue and expense breakdowns; however, flat operating/ordinary income with higher net income suggests support from lower credit costs or securities-related line items. Financial health appears sound given the scale and equity base, but the lack of CET1 or capital adequacy ratios limits solvency analysis beyond simple leverage. For a regional bank, the interest rate environment, deposit beta, and securities portfolio valuations remain key drivers into 2H. Overall, results imply steady core profitability with improved bottom-line efficiency, though the absence of detailed revenue and cost components tempers confidence in the sustainability assessment. Data limitations are significant, so conclusions focus on the available non-zero figures and standard banking context.

Profitability Analysis

ROE_decomposition: Bank-specific DuPont: ROE ≈ ROA × Leverage. ROA ≈ Net income / Total assets = ¥44.222bn / ¥20,943.626bn ≈ 0.21%. Leverage ≈ Assets / Equity = ¥20,943.626bn / ¥1,231.679bn ≈ 17.0x. Implied ROE ≈ 0.21% × 17.0 ≈ 3.6%. Classic margin and asset turnover (based on revenue) are not meaningful for banks due to non-disclosure of revenue and different accounting presentation. margin_quality: Net income rose 17% YoY to ¥44.222bn despite flat reported operating/ordinary income, implying improvement in below-the-line items (e.g., credit costs, securities gains/losses, minority interests) or tax effects. Effective tax rate ≈ 27.2%, within a normal range. Absence of net interest margin (NIM), fee income, and credit-cost details limits assessment of core margin quality. operating_leverage: Operating/ordinary income is flat YoY per the dataset while net income increased, indicating limited positive operating leverage at the operating line, with earnings growth likely driven by non-operating adjustments or lower credit costs. Without expense and income breakdowns, cost efficiency (e.g., OHR) cannot be determined. other_notes: Interest expense and depreciation are unreported, which is typical for banks in summarized disclosures; interest margin dynamics should be monitored via NII and NIM when available.

Growth Assessment

revenue_sustainability: Revenue lines are unreported; for banks, sustainable growth hinges on NII (NIM × interest-earning asset growth), fees/commissions, and stable credit costs. The flat ordinary income suggests stable core momentum but lacks detail to confirm recurring growth drivers. profit_quality: Net income growth of +17% YoY to ¥44.222bn appears robust; however, the absence of credit cost and securities P&L disclosure prevents determining whether growth is recurring (spread and fees) or driven by volatile items. outlook: With domestic rate normalization, there is potential for gradual NIM expansion, offset by rising deposit betas and potential valuation losses on bond portfolios. Regional loan demand and fee initiatives (investment trusts, insurance, settlement) will be important. Guidance and second-half trends in NII, fees, opex, and credit costs should dictate sustainability into FY2026 H2.

Financial Health

liquidity: Current and quick ratios are not meaningful for banks. Liquidity is typically assessed via LCR/NSFR and deposit stability, which are not disclosed here. The large liability base relative to assets is standard for a deposit-funded bank. solvency: Total equity ¥1,231.679bn against total assets ¥20,943.626bn implies an equity/asset ratio ~5.9% and financial leverage ~17x. Debt-to-equity reported at 16.63x aligns with liabilities/equity math. Lack of CET1/RWA and TLAC metrics limits granularity, but the absolute equity base appears substantial. capital_structure: Primarily deposit and wholesale funding (not itemized here) with equity supporting ~5.9% of assets. No disclosures on subordinated debt or hybrid capital in this dataset. Equity supports ROE of ~3.6% on a period-end basis.

Cash Flow Quality

earnings_quality: OCF is unreported; for banks, OCF is volatile and less indicative of earnings quality than accrual drivers (NII, fees) and credit costs. The tax charge and profit bridge suggest earnings are not tax-driven anomalies (tax rate ~27%). FCF_analysis: Capex and investing CF are unreported; banks’ FCF concepts are not directly comparable to industrials. Without cash flow detail, FCF coverage of dividends cannot be assessed. working_capital: Working capital metrics are inapplicable for banks; balance sheet quality should be assessed via loan/deposit trends, liquidity buffers, and securities portfolio duration—none disclosed here.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are unreported. Based on EPS of ¥62.50, payout cannot be computed from this dataset. FCF_coverage: Unavailable due to unreported OCF/FCF; banks typically fund dividends from recurring earnings rather than FCF in the industrial sense. policy_outlook: Regional banks commonly target stable or progressive dividends with payout ranges often around 30–40%, but no company-specific guidance is provided here. Confirm the bank’s disclosed shareholder return policy and CET1 levels to gauge headroom.

Risk Assessment

Business Risks:

• Net interest margin compression if deposit beta rises faster than asset yields
• Credit cost normalization from historically low levels, especially in SMEs and CRE
• Market risk from securities portfolio (interest rate risk in the banking book, unrealized bond losses)
• Slower regional loan demand and competition on pricing
• Regulatory changes affecting capital requirements or fee income

Financial Risks:

• High leverage inherent to banking (assets/equity ~17x)
• Potential AFS/HTM valuation impacts if yields rise further
• Refinancing and wholesale funding cost volatility (if reliance increases)
• Capital adequacy sensitivity without disclosed CET1 ratio
• Operational and compliance risks not quantified in the dataset

Key Concerns:

• Limited disclosure on NIM, fees, and credit costs restricts assessment of earnings sustainability
• Absence of capital ratios (CET1, total capital) limits solvency analysis depth
• Dividend capacity cannot be evaluated due to missing payout and cash flow data

Investment Implications

Key Takeaways:

• Net income of ¥44.222bn rose 17% YoY, indicating improved bottom-line performance
• Implied ROE ~3.6% using period-end equity; ROA ~0.21% and leverage ~17x
• Effective tax rate ~27.2%, within normal range
• Core profitability (ordinary income) appears stable but lacks detail
• Equity/asset ratio ~5.9%; D/E ~16.6x, typical for a regional bank
• Material data gaps (NIM, credit costs, capital ratios, dividends) constrain analysis

Metrics to Watch:

• Net interest margin (NIM) and deposit beta trajectory
• Credit costs (net) and NPL/coverage ratios
• Fee and commission income growth
• Securities portfolio duration and unrealized gains/losses
• Capital ratios (CET1, leverage ratio) and risk-weighted assets
• Opex trends and cost-to-income ratio
• Shareholder return policy (dividends and buybacks) and payout ratio

Relative Positioning: Based on available figures, Chiba Bank shows solid profitability momentum with a conservative ROA and typical regional-bank leverage; however, without NIM, credit cost, and capital disclosures, its relative standing versus regional peers cannot be precisely benchmarked.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis