THE SHIMIZU BANK,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥1.69B
• EPS: ¥133.91

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

Shimizu Bank (8364) reported FY2026 Q2 (cumulative) consolidated results under JGAAP with limited line-item disclosure typical for Japanese regional banks. Net income was ¥1.508 billion, up 21.6% YoY, indicating improved profitability versus the prior-year first half. Operating/ordinary income was ¥1.987 billion, suggesting that below-the-line items and taxes were relatively benign this period. Income tax expense was ¥201 million; against ordinary income, this implies an indicative effective tax rate of roughly 10.1%, though this may be skewed by special items not disclosed. Total assets stood at ¥1.788 trillion, liabilities at ¥1.734 trillion, and total equity at ¥79.033 billion, yielding an assets-to-equity multiple of 22.63x—high but typical for a regional bank balance sheet. Debt-to-equity of 21.94x aligns with a deposit-funded model rather than corporate leverage in the industrial sense. With revenue, gross profit, and cash flow statements not disclosed (recorded as 0 per the data feed), margin and cash-based analyses are constrained, and zeros should be treated as undisclosed rather than actual values. Based on period-end equity, half-year ROE (non-annualized) is roughly 1.9%, or about 3.8% if annualized, both within a conservative regional bank range though likely below top-tier peers. The earnings uplift YoY points to either better net interest income, stronger fee income, lower credit costs, securities-related gains, or expense discipline, but the mix is not observable from the dataset. Liquidity metrics such as current ratio and quick ratio are not meaningful for banks and are shown as zero due to nondisclosure; regulatory liquidity and capital ratios (LCR, CET1) are not provided. Dividend data are not disclosed; EPS printed at ¥133.91 but outstanding shares are not available, preventing cross-checks. Cash flow items (OCF/FCF) are not reported; for banks, earnings quality is better assessed via credit costs, realized/unrealized securities gains, and net interest margin trends—none of which are provided here. The balance sheet scale and leverage are consistent with a traditional regional bank funding profile, and no immediate solvency concerns are evident from the reported equity base. However, sensitivity to interest rate movements and securities valuation remains a key watchpoint given sector dynamics. Overall, performance appears stable to improving on earnings, but the lack of disclosure on key banking drivers (NIM, credit costs, securities portfolio) limits depth of analysis and increases uncertainty around sustainability.

Profitability Analysis

ROE_decomposition: Using a banking-adapted lens and available figures: ROE (half-year, non-annualized) ≈ Net income / Period-end equity = ¥1.508bn / ¥79.033bn ≈ 1.91%; annualized ≈ 3.82% (assumes steady H2). Assets-to-equity (leverage) is 22.63x (¥1.788tn / ¥79.033bn). ROA (half-year, non-annualized) ≈ ¥1.508bn / ¥1.788tn ≈ 0.08%; annualized ≈ 0.17%. Traditional DuPont elements (net margin, asset turnover) are not meaningful due to nondisclosure of revenue for banking. margin_quality: Net margin cannot be computed as operating revenue is undisclosed. Indicative tax burden is low (~10.1% of ordinary income), which may reflect deferred tax movements or non-taxable gains. Absent details on credit costs and securities gains, it is unclear whether margins benefited from one-offs versus core spread/fee improvements. operating_leverage: YoY net income growth of +21.6% against an undisclosed top line suggests either lower operating expenses relative to income, lower credit costs, or gains from securities. Without cost-income (OHR) data or revenue disclosure, operating leverage cannot be quantified; however, the positive earnings delta implies some degree of operating leverage or better income mix.

Growth Assessment

revenue_sustainability: Revenue and gross profit are undisclosed. For a regional bank, sustainability rests on net interest margin (NIM) resilience, loan growth in core SME/retail segments, fee income from settlement/asset management, and securities income—all not provided. The macro backdrop of BOJ policy normalization could support NIM, but also raises securities valuation risk. profit_quality: Net income rose to ¥1.508bn (+21.6% YoY). Profit quality depends on the split among core net interest income, fees, credit costs, and realized/unrealized securities gains. The low indicated tax rate hints at possible special items; lack of credit cost disclosure limits assessment of recurring earnings power. outlook: If H1 performance is largely core-driven, annualized ROE near ~3.8% would be plausible; if driven by securities gains or unusually low credit costs, H2 normalization could temper full-year profits. Rate environment could aid core spreads, but rising yields may pressure other comprehensive income and future realized gains. Net effect is cautiously stable with upside if NIM expands and credit quality remains benign.

Financial Health

liquidity: Conventional liquidity ratios (current/quick) are not applicable to banks and are shown as zero due to nondisclosure. Regulatory liquidity measures (LCR/NSFR) are not provided; typical regional bank deposit franchises support stable funding, but verification is not possible here. solvency: Equity is ¥79.033bn against ¥1.788tn in assets; leverage (A/E) is 22.63x, consistent with the sector. Debt-to-equity is 21.94x, reflecting deposit and wholesale liabilities. Equity ratio is reported as 0.0% due to nondisclosure; using totals, tangible equity/asset proxy is ~4.4% (¥79.033bn / ¥1.788tn), indicative of modest, sector-typical capitalization. capital_structure: Funding is predominantly liabilities (likely deposits) with equity at ~4–5% of assets by book value. Regulatory capital ratios (CET1/Tier1/Total) are essential but not disclosed; absence of these metrics is a key limitation for solvency assessment.

Cash Flow Quality

earnings_quality: Operating cash flow is undisclosed; for banks, OCF is less informative than accruals for industrials. Earnings quality should be assessed via credit cost ratio, NIM, fee stability, and securities-related gains/losses, none of which are provided. FCF_analysis: Free cash flow is undisclosed and not a meaningful construct for banks in the same way as for non-financials. Balance sheet growth and capital generation (retained earnings) are the relevant metrics. working_capital: Working capital metrics are not applicable to banks; loan/deposit dynamics and liquidity buffers are the appropriate analogs but are not disclosed.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are undisclosed. With EPS at ¥133.91 for H1, an indicative capacity to pay exists, but the absence of dividend policy and payout history in the dataset precludes assessment. FCF_coverage: FCF coverage cannot be assessed due to nondisclosure and limited relevance for banks. Dividend coverage should be gauged against core earnings and regulatory capital headroom (CET1), which are not provided. policy_outlook: Regional banks typically target stable dividends; sustainability depends on core profitability, credit cost normalization, and capital adequacy under Basel III. Without capital ratios or policy guidance, outlook is indeterminate.

Risk Assessment

Business Risks:

• Net interest margin compression or volatility amid BOJ policy shifts
• Credit cost normalization from historically low levels, especially SME exposures
• Fee income softness due to weaker customer activity or competition
• Regional concentration risk tied to local economic/demographic trends
• Operational and IT risks in digitalization and cybersecurity

Financial Risks:

• Interest rate risk in the banking book; duration mismatch affecting OCI and capital
• Securities portfolio valuation losses as yields rise (JGBs and foreign bonds)
• Funding mix risk if deposit betas rise faster than asset yields
• Capital adequacy uncertainty due to lack of disclosed CET1/Tier1 ratios
• Market risk from equity/foreign securities holdings if applicable

Key Concerns:

• Lack of disclosure on revenue/NIM, credit costs, and securities gains impedes earnings quality assessment
• Undisclosed regulatory capital and liquidity ratios constrain solvency and dividend capacity analysis
• Earnings reliance on potentially volatile securities-related items cannot be ruled out

Investment Implications

Key Takeaways:

• Net income of ¥1.508bn grew 21.6% YoY, signaling improved profitability in H1 FY2026.
• Leverage (A/E) at 22.63x and D/E at 21.94x are sector-typical for a regional bank.
• Annualized ROE inferred around ~3.8% (assumption-based) with non-annualized ~1.9%.
• Tax burden appeared low (~10.1% vs ordinary income), possibly reflecting non-recurring factors.
• Critical drivers (NIM, credit costs, securities valuation) are undisclosed, elevating uncertainty.

Metrics to Watch:

• Net interest margin and loan-deposit spread
• Credit cost ratio (bps) and NPL/coverage ratios
• Cost-to-income ratio (operating efficiency)
• Securities portfolio duration, unrealized gains/losses, OCI sensitivity to rates
• Basel III capital ratios (CET1/Tier1/Total) and dividend policy/payout ratio
• Loan growth by segment and deposit beta behavior

Relative Positioning: Based on available figures, Shimizu Bank exhibits earnings growth with conservative absolute profitability and sector-typical leverage; however, disclosure gaps versus peers constrain comparative assessment on NIM, efficiency, credit quality, and capital strength.

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