About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Net Sales | ¥49.37B | ¥41.72B | +18.3% |
| Ordinary Income | ¥13.55B | ¥10.05B | +34.9% |
| Profit Before Tax | ¥13.21B | ¥9.91B | +33.3% |
| Income Tax Expense | ¥4.26B | ¥3.25B | +31.2% |
| Net Income | ¥8.56B | ¥6.29B | +36.0% |
| Net Income Attributable to Owners | ¥8.94B | ¥6.66B | +34.3% |
| Total Comprehensive Income | ¥28.24B | ¥11.31B | +149.7% |
| Basic EPS | ¥314.58 | ¥233.61 | +34.7% |
| Diluted EPS | ¥314.55 | ¥233.57 | +34.7% |
| Dividend Per Share | ¥60.00 | ¥60.00 | +0.0% |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Property, Plant & Equipment | ¥37.21B | ¥37.52B | ¥-310M |
| Intangible Assets | ¥6.19B | ¥5.41B | +¥783M |
| Total Assets | ¥5.79T | ¥5.75T | +¥38.98B |
| Total Liabilities | ¥5.44T | ¥5.43T | +¥13.09B |
| Total Equity | ¥354.16B | ¥328.27B | +¥25.89B |
| Item | Value |
|---|---|
| Net Profit Margin | 18.1% |
| Debt-to-Equity Ratio | 15.36x |
| Effective Tax Rate | 32.3% |
| Item | YoY Change |
|---|---|
| Net Sales YoY Change | +18.3% |
| Ordinary Income YoY Change | +34.9% |
| Net Income YoY Change | +36.0% |
| Net Income Attributable to Owners YoY Change | +34.3% |
| Total Comprehensive Income YoY Change | +149.7% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 28.63M shares |
| Treasury Stock | 183K shares |
| Average Shares Outstanding | 28.43M shares |
| Book Value Per Share | ¥12,449.58 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥60.00 |
| Year-End Dividend | ¥85.00 |
| Item | Forecast |
|---|---|
| Net Sales Forecast | ¥100.00B |
| Ordinary Income Forecast | ¥26.50B |
| Net Income Forecast | ¥16.50B |
| Net Income Attributable to Owners Forecast | ¥17.50B |
| Basic EPS Forecast | ¥615.17 |
| Dividend Per Share Forecast | ¥108.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Verdict: Solid top-line and profit growth in FY2026 Q2 with excellent cost efficiency, but structurally low NIM keeps ROE subdued and interest-rate/OCI volatility risks elevated. Revenue rose 18.3% YoY to 493.67, ordinary income increased 34.9% YoY to 135.55, and net income climbed 34.3% YoY to 89.44. EPS (basic) printed at 314.58 yen, supported by improved profitability despite a very low NIM of 0.7%. Ordinary income margin (ordinary income/revenue) stands at roughly 27.5%, while net margin is 18.1%—healthy for a regional bank given the rate environment. Cost efficiency is a standout: the cost-to-income ratio sits at 35.5% (well below the <50% benchmark), indicating strong operating discipline. Balance-sheet intermediation remains prudent with an LDR of 77.7% (within the 70–90% optimal range), suggesting comfortable liquidity. However, NIM at 0.7% remains far below the healthy >2% benchmark, constraining structural earnings power despite volume and fee momentum. ROE is 2.5%, reflecting very low asset turnover (0.009) despite 16.36x financial leverage, a typical profile for Japanese regional banks under prolonged low-rate conditions. Comprehensive income of 282.39 far exceeds net income, implying significant OCI gains (likely from securities valuation) that can be volatile with rate moves. Effective tax rate is 32.3%, broadly in line with expectations and not a driver of volatility. The balance sheet shows total assets of 57,925.59 and equity of 3,541.58 (equity-to-assets about 6.1%), consistent with high leverage typical of banks (reported D/E 15.36x). Dividend payout ratio is a moderate 46.4%, seemingly sustainable against current earnings, though free cash flow coverage is unassessable due to unreported cash flows. Margin expansion/compression vs last year cannot be quantified due to unreported prior-period margin bases, but the scale of YoY profit growth suggests positive operating leverage. Earnings quality assessment is constrained by missing OCF; nevertheless, the heavy OCI contribution to comprehensive income suggests headline capital could be sensitive to rate movements. Forward-looking, sustaining revenue growth will hinge on fee income and prudent loan growth while guarding NIM, credit costs, and securities-related OCI volatility.
DuPont (ROE = Net Profit Margin × Asset Turnover × Financial Leverage): ROE 2.5% = 18.1% × 0.009 × 16.36x. The weakest link is asset turnover (0.009), which is inherently low for banks due to large balance sheets versus revenue; leverage (16.36x) compensates partially, while margin at 18.1% is decent. The largest constraint on ROE is the low asset turnover driven by a low NIM (0.7%), which suppresses revenue generation per unit of assets. Business drivers: prolonged low/flat rate environment and competition compress loan yields, while funding costs, although low, cannot offset spread pressure; fee income helps but is insufficient to materially lift asset turnover. Sustainability: current margin and cost discipline (CIR 35.5%) appear sustainable near term; structural NIM improvement likely requires rate normalization or continued shift toward higher-yielding assets/fees. Potential concern: if SG&A (not disclosed) or operating expenses begin to outpace income growth, the CIR could deteriorate; at present, reported efficiency is strong. Ordinary income growth (+34.9% YoY) outpaced revenue growth (+18.3% YoY), indicating positive operating leverage this period; whether this persists depends on credit costs and market-related income stability.
Revenue growth of 18.3% YoY indicates improved intermediation volumes and/or stronger non-interest income contribution. Ordinary income and net income growth (+34.9% and +34.3% YoY, respectively) show amplified profitability, aided by tight cost control (CIR 35.5%). Interest income of 323.59 and interest expense of 80.93 imply net interest income of ~242.66, leaving roughly ~251 of non-interest income to reach total revenue, suggesting a meaningful fee/market income component. Given NIM at 0.7%, revenue sustainability likely depends on fee income expansion (settlement, asset management, bancassurance) and disciplined asset mix rather than spread widening. Market-related income and securities gains can be volatile; comprehensive income far exceeding net income signals sensitivity to valuation gains/losses. Near-term outlook is cautiously positive on costs and volumes; structural growth remains capped by low NIM unless rates rise or product mix improves.
Liquidity appears sound with LDR at 77.7%, indicating loans are comfortably funded by deposits; deposit base of 46,220.05 vs loans of 35,900.50 provides buffer. Current and quick ratios are not meaningful for banks and are unreported. Leverage is high (D/E 15.36x), which is typical for banks but still a risk flag per generic thresholds; equity-to-assets is ~6.1%. Maturity mismatch risk cannot be precisely gauged without the securities portfolio breakdown and duration; however, the large comprehensive income suggests sizable available-for-sale holdings that are rate-sensitive. No off-balance sheet obligations were disclosed; contingent exposures (guarantees, derivatives) are not reported here and may exist. Capital adequacy ratios (CET1, total capital) are unreported, limiting solvency assessment precision.
Operating cash flow and free cash flow are unreported, so OCF/Net Income and FCF coverage cannot be assessed. As a bank, cash flow analysis relies on detailed breakdowns of operating cash movements and credit costs, which are unavailable. Earnings quality appears reliant on core income plus fees, but the outsized comprehensive income vs net income indicates material unrealized valuation gains that can reverse with rates. No signs of working capital manipulation are assessable in a banking context from the provided data. Sustainability of cash generation for dividends appears acceptable given payout ratio (46.4%), but verification via OCF would be preferable.
Payout ratio is 46.4%, within the <60% benchmark and consistent with typical regional bank policies. Cash flow coverage cannot be confirmed due to unreported OCF/FCF. Balance-sheet leverage is high (industry-typical), and capital adequacy metrics are not disclosed here; sustained dividends will depend on stable earnings, controlled credit costs, and limited OCI drawdowns that could pressure capital. In the absence of capital ratio data, assume a conservative stance: current payout looks manageable on current earnings but sensitive to market-related income swings and interest-rate-driven OCI volatility.
Business Risks:
Financial Risks:
Key Concerns:
Key Takeaways:
Metrics to Watch:
Relative Positioning: Within Japanese regional banks, 百十四銀行 demonstrates strong cost efficiency and prudent funding (low CIR, LDR within range) but faces the common structural challenge of sub-1% NIM, resulting in modest ROE. Its performance this quarter benefits from operating leverage and likely market-related gains, placing it in the more efficient cohort operationally, albeit with profitability still capped by the rate environment.
This analysis was auto-generated by AI. Please note the following:
| Capital Stock | ¥37.32B | ¥37.32B | ¥0 |
| Capital Surplus | ¥30.49B | ¥30.49B | ¥0 |
| Retained Earnings | ¥211.67B | ¥204.90B | +¥6.77B |
| Treasury Stock | ¥-494M | ¥-565M | +¥71M |
| Owners' Equity | ¥354.15B | ¥328.26B | +¥25.88B |