| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥610.6B | ¥522.1B | +16.9% |
| 営業利益 | - | - | - |
| 経常利益 | ¥112.5B | ¥91.2B | +23.2% |
| 純利益 | ¥78.4B | ¥60.4B | +29.8% |
| ROE | 4.4% | 3.8% | - |
The cumulative results for the six months ended March 2026 landed at Ordinary Revenue of ¥610.6B (YoY +¥88.5B +16.9%), Ordinary Income of ¥112.5B (YoY +¥21.2B +23.2%), and Net Income attributable to owners of parent of ¥76.9B (YoY +¥20.3B +35.8%), marking revenue and profit growth. Against a backdrop of rising interest rates, net interest income expanded, with loan balance at 2兆1,255B円 (period-end +681B円), securities at 9,038B円 (period-end +324B円) and active asset allocation. Loan yield is estimated at 1.18% and deposit yield at 0.18%, widening the NIM to about 100bp. Operating margin (Ordinary Income / Ordinary Revenue) improved to 18.4% from 17.5% a year earlier (+0.9pt), and net margin improved to 12.8% from 11.6% (+1.2pt). Comprehensive income turned strongly positive at ¥244.8B, supported by Securities Valuation Differences +¥87B, Deferred Hedge Gains/Losses +¥45B, and Retirement Benefit Adjustments +¥36B, significantly improving the quality of equity. Progress toward full-year forecasts (Ordinary Income ¥131.0B, Net Income ¥85.0B) is high, with progress rates of 85.9% for Ordinary Income and 90.5% for Net Income.
【Revenue】 Ordinary Revenue grew strongly to ¥610.6B (YoY +16.9%). By segment: Banking ¥549.0B (89.9% of total), Leasing ¥53.2B (8.7%), Others ¥9.6B (1.6%). Investment income rose significantly to ¥425.7B (YoY +¥131.4B), driven mainly by loan interest ¥251.3B (+¥59.2B) and securities interest & dividends ¥141.6B (+¥62.0B). Loan balance increased to 2兆1,255B円 (YoY +681B円 +3.3%), and securities balance to 9,038B円 (YoY +324B円 +3.7%), reflecting an increase in invested assets. Fee income netted ¥47.8B (fees received ¥73.5B − fees paid ¥25.7B); while fees received decreased slightly YoY, the level remains stable. Other operating income ¥54.1B contributed to revenue diversification.
【Profit & Loss】 Funding costs rose to ¥76.9B (YoY +¥48.2B) due to higher deposit rates, but net funding income (investment income − funding costs) expanded to ¥348.8B, clearly benefiting from margin improvement. SG&A amounted to ¥219.0B, which grew at a rate below revenue growth (+16.9%), indicating effective cost control. Other operating expenses ¥164.8B include market-related P&L adjustments, but overall Ordinary Income reached ¥112.5B (+23.2%). Extraordinary losses were limited at ¥5.5B (of which impairment losses ¥4.3B). Pre-tax income of ¥107.0B less corporate taxes of ¥29.9B resulted in Net Income attributable to owners of parent of ¥76.9B (+35.8%). In conclusion, the company achieved revenue and profit growth driven by expanded net interest income in a rising-rate environment and disciplined expense control.
The Banking segment generated external Ordinary Revenue of ¥549.0B and segment profit of ¥112.8B, producing effectively the entirety of consolidated Ordinary Income of ¥112.5B. The Leasing segment posted external Ordinary Revenue of ¥53.2B and segment profit of ¥1.9B, serving a complementary role. Other segments (consulting, regional trading company, fund management, guarantees, credit cards, etc.) reported external Ordinary Revenue of ¥9.6B and segment profit of ¥1.9B. Consolidated Ordinary Income after intersegment eliminations aligns at ¥112.5B. Banking operations account for the majority of revenue and profits, while leasing and other businesses provide limited revenue diversification.
【Profitability】Operating margin (Ordinary Income / Ordinary Revenue) improved to 18.4% from 17.5% a year earlier (+0.9pt). Net margin rose to 12.8% from 11.6% (+1.2pt). ROE improved to 4.4% (prior year 3.4%), but remains below the 6–8% level of leading regional banks, indicating room to improve capital efficiency. Net interest margin is estimated at approximately 1.0% (equivalent to 100bp NIM) and has expanded, monetizing the rising rate environment. 【Cash Quality】Operating Cash Flow / Net Income is −8.1x, and Operating Cash Flow / EBITDA (OCF / (Ordinary Income + Depreciation)) is −5.1x; although negative, in banking these ratios are affected by loan and securities growth, so credit costs and valuation gains/losses on marketable securities should be prioritized when assessing earnings quality. 【Investment Efficiency】Total asset turnover is 0.017x (Ordinary Revenue ¥610.6B / Total Assets 3.58兆円), which is structurally low for banking. Investment in tangible fixed assets was ¥6.1B, 0.50x depreciation of ¥12.3B, indicating restrained capital expenditure; continued efficiency investments in intangible assets (mainly software) amounted to ¥4.2B. 【Financial Soundness】Equity Ratio is 5.0% (prior year 4.5%), above the domestic minimum standard of 4%, but buffer is limited. D/E ratio is 18.9x (Liabilities ¥3.40兆円 / Net Assets ¥1,793B), high but acceptable within the banking leverage model. Loan-to-deposit ratio is 67.4% (Loans ¥2.13兆円 / Deposits ¥3.16兆円), indicating a healthy liquidity cushion and relatively contained short-term maturity mismatch risk.
Operating Cash Flow was −¥634.0B (improved from −¥1,305.0B prior year), Investing Cash Flow was −¥314.0B (improved from −¥878.5B prior year), and Financing Cash Flow was −¥23.3B, resulting in Free Cash Flow of −¥948.0B. The negative OCF was primarily due to loan increases +681B and securities +324B associated with active expansion of invested assets, which is typical in a banking balance-sheet expansion phase. OCF subtotal (before working capital changes) was −¥598.7B, and corporate taxes paid were −¥35.2B; the divergence from pre-tax income of ¥107.0B is dominated by asset increases in loans and securities. Investing CF included capex −¥6.1B and intangible asset investment −¥4.2B, indicating restrained fixed-asset and system investments; the remainder appears to be flows related to marketable securities operations. Financing CF comprised dividend payments −¥24.3B and treasury stock acquisitions −¥1.2B, partially offset by treasury stock sales +¥2.2B, netting to −¥23.3B. Cash and cash equivalents decreased by ¥971.3B during the period to end at ¥3,667B (prior year ¥4,639B), but liquidity remains ample.
The current period's profit increase was mainly driven by improved recurring revenue: expansion of investment income (+¥131.4B) and stable fee income supported profits. Extraordinary losses were limited to ¥5.5B (of which impairment losses ¥4.3B, disposal loss on fixed assets ¥1.2B), and the divergence between Ordinary Income and Net Income is mainly attributable to corporate taxes of ¥29.9B and is within a normal range. Comprehensive Income of ¥244.8B significantly exceeded Net Income of ¥76.9B; Other Comprehensive Income totaled ¥167.7B (Securities Valuation Differences +¥87B, Deferred Hedge Gains/Losses +¥45B, Retirement Benefit Adjustments +¥36B), boosting shareholders' equity. Improvement in valuation P&L reflects a favorable market environment and contributes to higher quality of equity, though OCI can be impaired on market reversals. While OCF/Net Income −8.1x and OCF/EBITDA −5.1x suggest low accrual quality on the surface, in banking these ratios are heavily influenced by asset growth (loans & securities), so they are not suitable alone to judge earnings quality. Disclosure of credit costs is limited, but allowance for loan losses balance (allowance for doubtful accounts ¥153B) equals 0.7% of loan balance, indicating stability and no sign of a sharp rise in credit costs. With improvement in recurring revenue base and valuation gains, earnings quality improved YoY.
Full-year forecasts target Ordinary Income of ¥131.0B (YoY +16.4%) and Net Income attributable to owners of parent of ¥85.0B (YoY +8.4%). Half-year cumulative results show Ordinary Income of ¥112.5B (progress 85.9%) and Net Income ¥76.9B (progress 90.5%), high progress rates. These far exceed the typical first-half ratio (~50%), and barring a sharp rise in credit costs or market-related losses, full-year forecasts are likely to be exceeded. Dividend guidance is annual ¥100 (interim actual ¥75, year-end expected ¥25), but the company has already paid interim ¥75 and the market is pricing in an annual ¥175 when combining the expected year-end dividend. Forecast EPS is ¥478.48 versus actual EPS ¥433.02; with profit accumulation in the second half, achieving forecasts is within sight. No forecast revisions have been announced, but given the progress rates and market environment, full-year targets appear achievable unless significant downside emerges in H2.
Annual dividend is ¥175 (interim ¥75, year-end ¥100). Total dividends versus Net Income attributable to owners of parent of ¥76.9B amount to approximately ¥31.1B (¥175 × shares outstanding 17,798 thousand), implying a payout ratio of about 40.4%. Prior year dividend was annual ¥45 (interim only), so this represents a substantial increase year-over-year. Treasury stock repurchases were small at ¥1.2B, making dividends the primary form of shareholder return. Total return ratio (dividends + buybacks) is estimated at approximately 42%, balancing shareholder returns with internal capital accumulation. Against Free Cash Flow of −¥948.0B, dividends + buybacks of about ¥32B imply an FCF coverage of −30.1x, which appears weak on the surface; however, bank FCFs fluctuate significantly with balance-sheet expansion, so dividend sustainability depends on the earnings base and the tolerable Equity Ratio (5.0%). With cash and deposits of ¥3,667B and OCF subtotal of −¥598.7B, liquidity remains ample and there is no immediate concern on dividend continuity. Going forward, dividend policy is expected to aim for stable payouts around a payout ratio of approximately 40% while balancing profit growth and improvement in Equity Ratio.
Interest Rate Risk: The bank holds interest-rate-sensitive assets—Loans ¥2.13兆円 and Securities ¥0.90兆円—and while rising rates have expanded net interest income, falling rates or a shift to an inverted yield curve could compress margins and quickly reduce earnings. Deferred hedge gains/losses of ¥54B suggest active derivative hedging of interest rate risk; in times of market stress, hedge costs could pressure profits.
Limited Equity Buffer: Equity Ratio of 5.0% is only 1.0pt above the domestic minimum standard of 4%, implying limited stress resilience. Securities valuation difference of −¥37B (valuation loss) exists, and market deterioration could erode OCI and equity. Borrowings of ¥1,419B (YoY +¥547B +62.8%) indicate increased reliance on market funding, and rising funding costs or liquidity tightening could constrain capital policy.
Regional Economic Concentration & Credit Cost Risk: The loan portfolio is concentrated in regional corporates; regional economic slowdown or population decline could depress loan demand and fee income. Allowance for loan losses ¥153B (0.7% of loans) is currently stable, but credit cost increases in a downturn would pressure profits. Non-financial activities (regional trading company, fund management, etc.) provide limited revenue diversification given their small scale.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 純利益率 | 12.8% | 11.9% (7.2%–35.4%) | +0.9pt |
Net margin is 0.9pt above the industry median, positioning the bank in the upper-middle of the peer group, reflecting the ability to monetize rising interest rates.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 16.9% | 10.1% (7.3%–12.1%) | +6.8pt |
Revenue growth rate exceeds the industry median by 6.8pt, reflecting aggressive asset allocation and expansion of net interest income in a rising-rate environment.
※Source: Company aggregation
Expansion of net interest income in a rising-rate environment is evident, with loan yield 1.18% and deposit yield 0.18%, securing approximately 100bp NIM. Operating margin 18.4% (+0.9pt YoY) and net margin 12.8% (+1.2pt YoY) indicate improving profitability, and cost control is effective. Progress rates vs forecasts (Ordinary Income 86%, Net Income 91%) are high, increasing the likelihood of beating full-year forecasts.
The large gap between Comprehensive Income ¥244.8B and Net Income ¥76.9B is due to Other Comprehensive Income +¥167.7B (Securities Valuation Differences +¥87B, Deferred Hedge +¥45B, Retirement Benefit Adjustments +¥36B), indicating improved quality of equity. Equity Ratio improved to 5.0% (prior year 4.5%), but the buffer is limited compared with top-tier peers (8–10%), so attention is needed to valuation swings of marketable securities and potential increases in credit costs.
Dividends were increased to annual ¥175 (payout ratio ~40%), demonstrating a clear shareholder-return stance aligned with profit growth. However, ROE at 4.4% and capital efficiency lag industry averages; strengthening non-interest income (fees, etc.) and further reducing cost ratios could incrementally raise ROE. Given high regional economic exposure, risks from population decline or downturns require monitoring; medium- to long-term diversification progress in businesses such as regional trading companies and fund operations should be watched.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference data aggregated by the company based on public financial statements. Investment decisions are your responsibility; please consult a specialist if necessary before acting.