TOMATO BANK,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥596M
• EPS: ¥51.42

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

Tomato Bank (TSE: 8542) reported FY2026 Q2 consolidated results under JGAAP with operating income and ordinary income of ¥1.008 billion and net income of ¥675 million, down 4% YoY on the disclosed basis. While the revenue and gross profit line items are undisclosed in the XBRL, banking business earnings are typically reflected in ordinary income; the flat ordinary vs. operating income suggests minimal non-operating distortion in this half. Using net income of ¥675 million and period-end equity of ¥57.155 billion, point-in-time ROE is roughly 1.18% for the half (annualized ~2.4%), indicating subdued profitability versus the sector’s typical mid–single-digit ROE for regional banks. With total assets of ¥1.358 trillion and equity of ¥57.155 billion, the implied equity-to-asset ratio is approximately 4.2%, and financial leverage is high at ~23.8x, which is typical for a Japanese regional bank. The effective tax rate is approximately 31.9% (income tax of ¥317 million versus pre-tax income of about ¥992 million), consistent with a normalized tax burden and suggesting earnings quality is not overly reliant on tax effects. EPS is ¥51.42; back-solving implies roughly 13.1 million shares outstanding (approximation, as the share count line is undisclosed). Cash flow statements are undisclosed in this filing, which is common for interim bank disclosures; hence, cash flow–based quality checks and FCF coverage cannot be assessed from the provided data. The reported debt-to-equity ratio of 22.89x aligns with the calculated leverage, reflecting a balance sheet structure consistent with deposit-funded banking. Dividend information is not disclosed for the period; the payout ratio and FCF coverage show as zero due to non-reporting, not because dividends were zero. Profitability appears stable at the ordinary income level, but bottom-line softness (−4% YoY) suggests mild pressure from credit costs, fees, or valuation effects (exact drivers are not disclosed). Operating leverage is difficult to evaluate without revenue and cost detail; however, flat ordinary vs. operating income points to limited swings in non-core items. Given the data limitations, the overall picture is of a conservatively capitalized regional bank with modest profitability and high leverage typical of the business model. Near-term earnings will remain sensitive to credit costs, securities valuation, and BOJ policy normalization, none of which are itemized in the disclosure. We therefore place emphasis on capital resilience (equity ratio proxy ~4.2%) and normalized tax rate as indicators of earnings quality, while acknowledging the lack of cash flow and segment detail.

Profitability Analysis

ROE_decomposition: Using a banking-adapted view: ROE ≈ Net income / Equity. NI = ¥675m; equity = ¥57,155m → ROE ~1.18% for the half (annualized ~2.36%). Leverage (Assets/Equity) ≈ 1,357,874 / 57,155 ≈ 23.76x. ROA proxy (NI/Assets) ≈ 675 / 1,357,874 ≈ 0.05% for the half (annualized ~0.10%). Traditional DuPont using revenue and gross margin is not meaningful given undisclosed revenue and bank-specific accounting. margin_quality: Net income of ¥675m with an implied effective tax rate of ~31.9% (317 / (675+317)). Ordinary income equals operating income (¥1,008m), indicating limited distortion from non-operating gains/losses in this period. Lack of fee/interest breakdown prevents assessment of net interest margin (NIM) or fee income stability. operating_leverage: Insufficient disclosure to compute revenue growth and cost ratios. The equality of operating and ordinary income suggests limited contribution from non-core items; operating leverage likely modest given typical regional bank cost structures, but cannot be quantified from the provided data.

Growth Assessment

revenue_sustainability: Revenue is undisclosed; therefore, we cannot directly assess interest income, fees, or trading gains. Ordinary income stability implies core operations are the main driver this half. profit_quality: Net income declined 4% YoY while ordinary income is unchanged in the disclosure, implying the delta likely stems from tax effects, credit costs, or valuation items impacting below operating line; specifics are not provided. outlook: Profit trajectory will depend on net interest margin under BOJ policy shifts, loan growth in the regional SME/retail base, credit cost normalization, and securities valuation. With leverage at ~23.8x and equity ratio proxy ~4.2%, earnings are likely to remain sensitive to market rates and credit trends, but capital appears consistent with peers.

Financial Health

liquidity: Current and quick ratios are not meaningful for banks and are undisclosed. Funding is typically deposit-based; no data on loan-to-deposit or liquidity coverage ratios are provided. solvency: Total assets ¥1,357.9bn, equity ¥57.2bn → equity-to-asset ~4.2%. Debt-to-equity reported 22.89x, consistent with banking leverage. Regulatory capital (CET1/Tier1) is not disclosed; thus, we rely on accounting equity as a proxy. capital_structure: High leverage (assets/equity ~23.76x) is standard for regional banks. Interest expense is undisclosed due to bank accounting classification; ordinary income coverage analysis is not applicable from provided data.

Cash Flow Quality

earnings_quality: Effective tax rate ~31.9% suggests normalized taxation; ordinary = operating income indicates limited reliance on non-operating gains this half. No evidence of large one-offs in the provided figures. FCF_analysis: Operating, investing, and financing cash flows are undisclosed for this period; free cash flow cannot be evaluated. For banks, traditional FCF metrics are less indicative given balance sheet–driven cash movements. working_capital: Working capital and current items are undisclosed; not a meaningful metric for banks due to the nature of financial assets and liabilities.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio are not disclosed; the zeros shown should be treated as non-reporting, not actual zeros. With EPS at ¥51.42 for the half, earnings capacity exists, but dividend decisions depend on full-year earnings and capital policy. FCF_coverage: Not assessable due to undisclosed cash flows and the limited utility of FCF for banks. policy_outlook: Without disclosed dividend guidance or historical payout data in this filing, we cannot infer policy changes. Sustainability would hinge on full-year profitability, credit costs, and regulatory capital buffers.

Risk Assessment

Business Risks:

• Net interest margin compression or volatility from BOJ policy normalization and yield curve shifts
• Credit cost uptick from SME/retail exposures in the core operating region
• Securities portfolio valuation losses amid rate volatility
• Fee income softness due to weak customer activity

Financial Risks:

• High leverage inherent to banking (Assets/Equity ~23.8x)
• Thin ROA (~0.10% annualized proxy) leaving limited buffer against shocks
• Concentration risk if regional loan book lacks diversification (not disclosed)
• Potential capital pressure if unrealized losses or credit costs rise (regulatory ratios not disclosed)

Key Concerns:

• Decline in net income (−4% YoY) despite stable ordinary income
• Lack of disclosure on revenue composition, credit costs, and securities gains/losses
• Absence of cash flow statements, hindering cross-checks on earnings sustainability

Investment Implications

Key Takeaways:

• Modest profitability: ROE ~1.18% for the half (annualized ~2.36%); ROA proxy ~0.10% annualized
• Leverage typical for a regional bank: Assets/Equity ~23.76x; equity-to-asset ratio ~4.2%
• Normalized tax burden (~31.9%) and limited non-operating effects suggest clean earnings in this half
• Bottom line softened (−4% YoY) despite stable operating/ordinary income, implying pressure below the operating line
• Disclosure gaps (revenue mix, credit costs, cash flows, capital ratios) constrain deeper analysis

Metrics to Watch:

• Net interest margin and loan/deposit growth (not disclosed this quarter)
• Credit costs and NPL ratio trends
• Securities valuation gains/losses and OCI impacts
• Regulatory capital ratios (CET1/Tier1) and leverage ratio
• Full-year dividend policy and payout trajectory

Relative Positioning: Within the Japanese regional bank cohort, Tomato Bank appears to exhibit modest profitability and standard balance sheet leverage. Absent regulatory capital and revenue mix disclosure, it likely sits in the middle-to-lower range on returns, with capital adequacy presumably in line with peers given the ~4.2% accounting equity ratio.

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