THE TOCHIGI BANK,LTD. FY2026 Q2 earnings report and financial analysis
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About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Ordinary Income | ¥4.93B | ¥2.04B | +142.2% |
| Income Tax Expense | ¥589M | - | - |
| Net Income | ¥4.18B | ¥1.38B | +202.5% |
| Net Income Attributable to Owners | ¥4.34B | ¥1.47B | +195.5% |
| Total Comprehensive Income | ¥6.16B | ¥259M | +2279.5% |
| Basic EPS | ¥41.83 | ¥14.19 | +194.8% |
| Dividend Per Share | ¥3.50 | ¥3.50 | +0.0% |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Property, Plant & Equipment | ¥25.17B | - | - |
| Intangible Assets | ¥1.15B | - | - |
| Total Assets | ¥3.38T | ¥3.33T | +¥50.38B |
| Total Liabilities | ¥3.18T | - | - |
| Total Equity | ¥159.01B | ¥153.09B | +¥5.91B |
| Item | Value |
|---|---|
| Debt-to-Equity Ratio | 20.00x |
| Item | YoY Change |
|---|---|
| Ordinary Income YoY Change | +1.4% |
| Net Income YoY Change | +2.0% |
| Net Income Attributable to Owners YoY Change | +2.0% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 109.61M shares |
| Treasury Stock | 5.48M shares |
| Average Shares Outstanding | 103.85M shares |
| Book Value Per Share | ¥1,526.96 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥3.50 |
| Year-End Dividend | ¥3.50 |
| Item | Forecast |
|---|---|
| Ordinary Income Forecast | ¥9.10B |
| Net Income Forecast | ¥7.60B |
| Net Income Attributable to Owners Forecast | ¥7.80B |
| Basic EPS Forecast | ¥75.11 |
| Dividend Per Share Forecast | ¥12.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Analysis integrating XBRL data (GPT-5) and PDF earnings presentation (Claude)
Tochigi Bank (TSE: 8550) reported FY2026 Q2 (cumulative through 1H) consolidated results under JGAAP with ordinary income and operating income both at ¥4.934bn and net income at ¥4.344bn, implying a solid rebound in profitability (+195.4% YoY in net income per disclosure). Revenue, gross profit, and other P/L subtotals are undisclosed in XBRL (zeros indicate non-reported items), which is typical for banks where “ordinary income/profit” and interest-related line items are the primary metrics. Using end-period balances, total assets were ¥3,384.29bn, total liabilities ¥3,180.813bn, and total equity ¥159.007bn. The simple equity-to-asset ratio is approximately 4.7% (calculated), while the reported equity ratio field shows 0.0% due to non-disclosure in the template. Effective tax expense was ¥589m, indicating an approximate effective tax rate near 12% versus pre-tax ordinary income, which is lower than the statutory rate and suggests favorable items or loss offsets. The bank’s financial leverage (Assets/Equity) is about 21.3x, broadly in line with a regional bank balance-sheet structure dominated by deposits and market funding. Annualizing 1H net income, a rough ROE proxy is approximately 5.4% (2 × ¥4.344bn / ¥159.007bn), while annualized ROA is near 0.26% (2 × ¥4.344bn / ¥3,384.29bn), both directionally consistent with a recovering earnings environment for Japanese regional banks. Cash flow statement items were not disclosed; this is common for banks where cash flow analysis is less indicative due to deposit-driven balance sheets. Dividend data (DPS, payout) were not reported in this dataset; therefore, dividend sustainability must be evaluated qualitatively alongside earnings trajectory and capital buffers. The sharp YoY increase in net income likely reflects improved credit cost trends, better securities-related gains, or margin stabilization, but exact drivers are not available from the provided fields. Capital remains modest on a tangible basis (equity/assets ~4.7%); regulatory capital (CET1, total capital ratios) is not disclosed here and is critical for a full solvency view. With operating and ordinary income equal and interest expense not disclosed, we emphasize ordinary profit and credit cost disclosures in the full financial report as the best profitability indicators. Overall, the bank shows improving earnings momentum with stable balance sheet size, but limited disclosure in this extract constrains deeper margin and fee analysis. Key monitoring items include net interest margin (NIM), fee income trends, credit costs/NPLs, and securities valuation impacts. We acknowledge data limitations and base ratio estimates on available period-end figures with simple annualization for directional context.
From Earnings Presentation: The Q2 FY2026 (March 2026) results achieved revenue and profit growth, with ordinary profit up ¥2.9 billion year-on-year to ¥4.9 billion and interim net profit up ¥2.9 billion to ¥4.3 billion, representing significant increases. The main drivers were increased interest income and reduced securities losses. The substantial securities portfolio review implemented in FY2025 (March 2025) proved effective, with unrealized gains/losses on securities holdings improving by ¥3.5 billion from negative ¥8.1 billion to negative ¥4.6 billion (including interest rate swap valuation gains/losses). The interim dividend was increased from ¥7.00 to ¥12.00, with the year-end dividend also projected at ¥12.00, doubling the annual dividend to ¥24.00. Deposit balances grew steadily to ¥3,154.8 billion (+¥33.7 billion), and loan balances expanded to ¥2,418.1 billion (+¥225.3 billion). Core banking profit (excluding investment trust cancellation gains/losses) was ¥4.6 billion, up 18.0% year-on-year. Interest income reached ¥13.7 billion (+11.7%), benefiting from policy rate increases. Assets under custody totaled ¥481.0 billion (+¥33.8 billion), advancing customer-oriented financial services. The consolidated capital adequacy ratio remained healthy at 9.99% (down 0.11 percentage points).
ROE_decomposition: For banks, a ROA × leverage approximation is most informative. Estimated annualized ROA ≈ (2 × ¥4.344bn) / ¥3,384.29bn = ~0.26%. Financial leverage (Assets/Equity) ≈ 3,384.29 / 159.007 = ~21.28x. Implied annualized ROE ≈ 0.26% × 21.28 ≈ ~5.4%. Net profit margin on a revenue basis is not meaningful due to undisclosed revenue and bank accounting specifics. margin_quality: Effective tax rate ≈ ¥589m / ¥4,934m ≈ ~11.9%, below statutory levels, suggesting positive non-taxable items, loss carryforwards, or mix effects. Ordinary income equals operating income in this dataset; interest income/expenses and credit costs are not disclosed, limiting assessment of core margin quality (NIM) and fee stability. operating_leverage: Insufficient detail to quantify expense elasticity. With only ordinary profit available, we cannot decompose cost-to-income or track OHR. Directionally, a near-2x YoY rebound in net income suggests either improved gross spreads, lower credit costs, or reduced expenses; precise operating leverage is indeterminable from provided data.
revenue_sustainability: Top-line proxies (interest income, fees) are not disclosed; revenue line shows as zero due to non-reporting. Thus, we cannot assess recurring revenue breadth or sustainability from this extract. profit_quality: Net income rose +195.4% YoY to ¥4.344bn (1H). Effective tax rate near 12% hints at non-recurring or mix effects. Without credit cost and securities gain/loss disclosure, the persistence of profit improvement is uncertain. outlook: Annualized ROE near ~5.4% is consistent with a recovering environment for regional banks amid rising interest rates and better securities valuations, but confirmation depends on NIM resilience, fee growth, and benign credit costs in 2H. Watch for sensitivity to interest rate volatility and unrealized AFS bond valuation swings.
liquidity: Traditional current/quick ratios are not applicable to banks. Funding is primarily via deposits and market instruments; related details are not disclosed. No immediate liquidity stress is inferable from the limited data. solvency: Calculated equity-to-asset ratio ≈ 4.7% (¥159.007bn / ¥3,384.29bn); regulatory capital ratios (CET1, total capital) are not provided and are essential for a full solvency assessment. Debt-to-equity of ~20x from the template reflects banking leverage rather than corporate debt. capital_structure: Assets ¥3,384.29bn; liabilities ¥3,180.813bn; equity ¥159.007bn. Leverage 21.3x is within a typical range for Japanese regional banks, but the quality of capital (CET1 composition, unrealized securities gains/losses) is undisclosed.
earnings_quality: Cash flow fields (OCF/ICF/FCF) are not disclosed; zeros indicate non-reporting. For banks, OCF metrics are less meaningful due to deposit flows. Earnings quality should be judged by core net business profit, NIM, fee stability, and credit costs—none are available here. FCF_analysis: Not applicable given non-disclosure and the nature of bank cash flows. Traditional FCF metrics are not decision-useful for banks. working_capital: Working capital metrics are non-applicable to banks; deposit and loan dynamics determine liquidity. No granular data on loans, deposits, or NPLs are provided.
payout_ratio_assessment: DPS and payout ratio are not disclosed in this extract. With 1H EPS at ¥41.83, an annualized EPS proxy would be ~¥83.7 assuming stable 2H, but without declared DPS or policy guidance, payout assessment cannot be quantified. FCF_coverage: Not assessable; FCF is not a relevant construct for banks and is not disclosed. policy_outlook: Regional banks typically target stable dividends subject to capital adequacy and earnings visibility. Absent CET1/regulatory ratios and formal guidance, we cannot comment on headroom. Monitor full-year results and capital disclosure for dividend capacity signals.
Full-year earnings forecast was already revised upward (disclosed October 29, 2025), with year-end dividend also increased to ¥12.00. In the interest rate normalization phase, increases in loan interest and deposit interest are driving NIM expansion, while funding costs including deposit interest continue to rise. The securities reinvestment plan focuses on short- to medium-term bonds to control interest rate risk, minimizing impact on valuation gains/losses even under a scenario of gradual domestic interest rate increases. The 11th Medium-Term Management Plan (from April 2023) basic strategy of 'strengthening profitability' emphasizes provision of highly specialized solutions such as business succession/M&A and business matching to expand fee and commission income. Assets under custody show NISA account numbers at 39,729 (+837, +2.1%), continuing to support customers' asset formation through proposals for long-term, systematic, and diversified investment. Digital strategy includes building a platform connecting Tochigi with other regions through 'Ichigo Branch' and promoting business efficiency for corporate customers through 'Tochigin Biz Portal'.
Management decided to increase the interim dividend from ¥7.00 to ¥12.00 based on the profitable interim results, with full-year dividend expected to increase from ¥14.00 to ¥24.00. To achieve 'realization of new value provision,' management focuses on 'thorough credit creation for the region' and 'challenges in new business areas beyond the traditional financial framework.' In interest rate risk management, management emphasizes the success of the large-scale portfolio review implemented in FY2025 (March 2025), and plans to continue reinvestment centered on short- to medium-term bonds assuming gradual domestic interest rate increases. Leveraging a regionally-focused operating base where Tochigi Prefecture customers account for 81.1% of deposits and 55.9% of loans, management continues lending to individuals and SMEs and business support. Management values the achievement of ¥33.8 billion increase in assets under custody through provision of 'customer-oriented financial services.' OHR improvement (73.35%→71.15%) was achieved despite increased growth investments including base salary increases, human capital investment, and DX/system investment, demonstrating both expense control and profitability enhancement.
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Relative Positioning: Based on limited data, Tochigi Bank appears to be in an earnings recovery phase consistent with many Japanese regional banks, with moderate profitability improvement and typical leverage; however, absence of NIM, credit, securities, and capital ratios prevents a robust relative ranking versus peers.
This analysis was auto-generated by AI. Please note the following:
| Capital Stock | ¥27.41B | - | - |
| Capital Surplus | ¥30.04B | - | - |
| Retained Earnings | ¥96.42B | - | - |
| Treasury Stock | ¥-2.29B | - | - |
| Owners' Equity | ¥157.36B | ¥151.49B | +¥5.87B |