| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥303.1B | ¥264.0B | +14.8% |
| Operating Income | - | - | - |
| Ordinary Income | ¥63.4B | ¥55.8B | +13.7% |
| Net Income | ¥42.4B | ¥38.4B | +10.2% |
| ROE | 4.5% | 4.4% | - |
For the fiscal year ended March 2026, the Kita-Nippon Bank Group recorded ordinary revenues of ¥303.1B (YoY +¥39.1B +14.8%), Ordinary Income of ¥63.4B (YoY +¥7.7B +13.7%), and Net Income attributable to owners of the parent of ¥43.6B (YoY +¥3.5B +8.8%). As a financial conglomerate primarily engaged in banking, the Group captured the interest rate upcycle associated with the BOJ’s normalization of monetary policy: interest income rose sharply to ¥221.9B (YoY +¥38.9B +21.3%), while interest expense increased to ¥29.4B (YoY +¥19.8B). Net interest income of ¥192.5B was secured. Operating expenses (SG&A) increased to ¥239.6B (YoY +¥31.5B +15.1%), outpacing revenue growth, leaving the Cost-to-Income Ratio (CIR) at approximately 79%, still at a high level. Nevertheless, solid fee income of ¥5.8B and gains from securities operations supported profit growth. Comprehensive income reached ¥102.3B, 2.4x net income, with an increase in Net Unrealized Gains on Securities of ¥52.7B contributing to equity accumulation. Total assets expanded to ¥1,563.5B (YoY +¥37.2B +2.4%), and total equity to ¥95.0B (YoY +¥8.6B +9.9%). EPS was ¥527.94 (YoY +¥52.37 +11.0%), and BPS was ¥11,593.80, steadily accumulating. While revenue and profit growth continued, improving cost efficiency and the Equity Ratio of 6.1% remain medium-term challenges.
【売上高】
Ordinary revenues were ¥303.1B (YoY +14.8%), achieving double-digit growth. The main driver was interest income of ¥221.9B (YoY +¥38.9B +21.3%): loan interest ¥156.6B (YoY +¥24.4B +18.5%) and interest/dividends on securities ¥59.9B (YoY +¥12.8B +27.1%), reflecting both an expansion of invested assets and rising rates. Loan balances edged up to ¥1,115.5B (YoY +1.3%), but improved loan yields drove large increases in interest income. Interest expense surged to ¥29.4B (YoY +¥19.8B +207%), mostly deposit interest of ¥28.9B (YoY +¥20.0B +212%), reflecting pass-through to deposit rates on deposit balances of ¥1,441.1B. Net interest income stood at ¥192.5B, and the estimated Net Interest Margin (NIM) was about 1.28%, below the industry benchmark lower bound of 1.5%, though loan spread expansion in the rate-up phase provided support. Fee and commission income was ¥28.5B (YoY +¥29.0B), other operating income ¥5.0B (YoY +¥1.4B), and other ordinary revenues ¥40.0B (YoY +¥3.8B), indicating diversification of non-interest income. By segment, banking external-customer ordinary revenues were ¥267.4B (88.2% share), leases ¥34.1B (11.2%), and credit card/guarantee ¥1.5B (0.5%), with the latter two in complementary roles.
【損益】
Ordinary expenses amounted to ¥239.6B (YoY +15.1%), outpacing revenue growth and mildly compressing margins. The largest expense item was general and administrative expenses of ¥135.6B (YoY +¥5.8B +4.5%), driven by higher personnel costs and increased facility-related expenses. The sharp rise in interest expense (+¥19.8B) was mainly due to pass-through to deposit rates, and managing the interest rate gap on funding and investments will be crucial for future profitability. Fee and commission expenses were ¥22.5B (YoY -¥0.7B) slightly down, other operating expenses ¥15.6B (YoY +¥1.9B), and other ordinary expenses ¥39.3B (YoY +¥3.6B) with marginal increases. Depreciation within G&A was ¥9.7B (YoY +¥1.0B +11.5%), reflecting accumulated software investments. The Cost-to-Income Ratio (expenses / gross operating profit) is about 79%, high relative to peers, indicating substantial room for efficiency gains. Starting from Ordinary Income of ¥63.4B, after special gains of ¥0.1B and special losses of ¥1.4B, pre-tax income was ¥62.2B. Income taxes were ¥18.6B (effective tax rate 29.9%), resulting in Net Income attributable to owners of the parent of ¥43.6B (YoY +8.8%). The main special losses were impairment losses of ¥0.4B and loss on disposal of fixed assets ¥0.9B—temporary factors. The divergence between Ordinary Income and Net Income is mainly due to tax burden, with no clear structural distortion. In conclusion, large interest income increases and solid non-interest income drove revenue and profit growth in the rate-up environment, but expense growth exceeded revenue growth, causing a slight decline in profit margins year-on-year.
The Banking segment is dominant with segment profit of ¥61.0B (94.7% contribution) and segment assets of ¥1,560.5B (99.3%). Of external-customer ordinary revenues of ¥267.4B, investment income was ¥223.3B, fee transaction income ¥28.5B, and other operating income ¥15.6B, indicating a balanced revenue structure. The Leasing segment posted segment profit of ¥1.6B and external-customer ordinary revenues of ¥34.1B, functioning as a small but stable complementary revenue source. The Credit Card & Guarantee segment delivered segment profit of ¥1.8B and external-customer ordinary revenues of ¥1.5B with relatively high margins, expected to generate synergies with the retail customer base. Others (investment business), including Kita-gin Capital Partners Co., Ltd., established in July 2025, recorded external-customer ordinary revenues of ¥0.1B and a segment loss of ¥0.1B, still in its early stage. Inter-segment transactions were ¥7.0B, or 2.3% of total revenues, limited in scale. The high concentration in banking underscores the medium-term growth challenge of diversifying revenue streams and developing leasing and card/guarantee businesses.
【収益性】ROE was 4.5% (previous year 4.7%) slightly down, consistent with net profit margin 14.0% (previous year 14.5%) multiplied by total asset turnover 0.019 (previous year 0.017) and financial leverage 16.45x (previous year 17.7x). Leverage fell because equity accumulation (+9.9%) outpaced total asset growth (+2.4%), leaving room to improve capital efficiency. Bank-specific metrics: estimated NIM was about 1.28% (net interest income ¥192.5B ÷ average earning assets ~¥1.5T), below the industry benchmark lower bound of 1.5%, though spread expansion in the rate-up phase provided support. Loan yield was about 1.41% (loan interest ¥156.6B ÷ average loan balance ~¥1.11T), deposit yield about 0.20% (deposit interest ¥28.9B ÷ average deposit balance ~¥1.44T), securing a spread of about 1.21%. CIR was about 79% (G&A ¥135.6B ÷ (interest income - interest expense + fee income)), high and indicating cost-efficiency improvement is key to medium-term ROE enhancement. 【キャッシュ品質】Operating Cash Flow (OCF) was ¥198.9B, 4.6x net income ¥43.6B, with operating cash flow before working capital changes ¥207.4B and corporate tax payments ¥8.5B, showing robust cash generation. The accrual ratio ((Net Income - OCF) / Total Assets) is about -1.0%, negative, indicating very strong cash backing of profits. Capex was ¥11.6B against depreciation ¥9.7B (capex/depreciation = 1.19x), slightly exceeding maintenance capex, maintaining a healthy investment pace. 【投資効率】Total asset turnover is low at 0.019, but consistent with a banking model that earns returns on invested assets; peer-relative assessment is appropriate. Securities holdings were ¥284.59B (YoY +4.9%), 18.2% of total assets, serving as a pillar of portfolio diversification. Allowance for loan losses increased to ¥8.35B (YoY +10.7%), 0.75% of loans (previous year 0.68%), indicating forward provisioning. 【財務健全性】Equity Ratio improved to 6.1% (previous year 5.7%) but remains below the international benchmark of 8%, making continued capital accumulation important. D/E ratio is high at 15.45x, reflecting the structural characteristic of deposit-funded banking; monitoring liquidity metrics is appropriate. Loan-to-deposit ratio was about 77% (loans ¥1,115.5B ÷ deposits ¥1,441.1B), within the appropriate range (70–90%), indicating adequate liquidity buffer. Cash and deposits increased to ¥124.39B (YoY +12.0%), enhancing short-term liquidity. Retirement benefit liabilities decreased to ¥1.46B (previous year ¥1.70B), while retirement benefit assets (net) rose to ¥3.67B (previous year ¥2.74B), reflecting favorable pension asset performance.
OCF was ¥198.9B (previous year ▲¥170.7B), a significant improvement. With operating cash flow before working capital changes ¥207.4B less corporate tax payments ¥8.5B, the main driver was limited negative working capital changes of about ¥-8.5B. The prior year saw a large working capital outflow with operating cash flow before working capital changes of ▲¥162.3B, but this year net deposit increases of ¥21.10B contributed as a funding source, offsetting net loan increases of ¥14.07B. Investing cash flow was ▲¥50.1B (previous year ▲¥49.9B), driven by securities purchases of ▲¥38.5B and capex of ¥11.6B. Free Cash Flow was ¥148.8B (OCF + investing CF), ample and far exceeding dividends of ¥11.9B and share buybacks of ¥5.0B. Financing CF was ▲¥17.0B (previous year ▲¥12.6B), driven by dividends and treasury stock purchases. Cash and cash equivalents at end of period were ¥123.05B (opening ¥109.87B), up ¥13.18B, further strengthening liquidity buffers. On working capital, increases in accrued expenses of ¥1.58B and deferred income of ¥0.42B boosted OCF, but appear to be within normal timing effects at period-end, with limited signs of manipulation. With depreciation ¥9.7B and capex ¥11.6B, the Group maintained a healthy investment pace slightly above maintenance levels, and cash-generating ability is highly rated.
Of Ordinary Income ¥63.4B this period, core banking earnings—interest results (net interest income ¥192.5B)—were the main pillar, complemented by fee income ¥6.0B and other operating income ¥5.0B. Special gains were ¥0.1B and special losses ¥1.4B, immaterial; the losses consisted of impairment losses ¥0.4B and loss on disposal of fixed assets ¥0.9B and are temporary. The only divergence between Ordinary Income and pre-tax income was special items of ¥1.2B, indicating no structural distortion. Pre-tax income ¥62.2B and income taxes ¥18.6B (effective tax rate 29.9%) are within normal range; changes in deferred tax assets/liabilities correspond naturally to valuation differences. Comprehensive income was ¥102.3B, substantially above net income ¥43.6B, contributed by Net Unrealized Gains on Securities ¥52.7B and retirement benefit adjustments ¥5.9B. The buildup of valuation differences reflects improved interest rates and equity markets, but there is reversal risk on market downturns, posing a volatility factor for equity. OCF at 4.6x net income and an accrual ratio of -1.0% indicate very strong cash backing, making accounting profit manipulation less likely. Composition of other ordinary revenues includes FX trading gains and securities sale gains, accounting for 13.2% of ordinary revenues and subject to market conditions. Overall, core operations (net interest and fees) generate most profits, one-off factors are minor, and cash backing is solid.
Against the company plan (Ordinary Income ¥66.0B, Net Income attributable to owners of the parent ¥44.0B, basic EPS ¥549.27, annual dividend ¥96), actuals were Ordinary Income ¥63.4B (progress 96.1%) and Net Income attributable to owners of the parent ¥43.6B (progress 99.1%), generally at plan levels. The slight shortfall in Ordinary Income was likely due to higher-than-assumed interest expense and increases in other operating expenses, but the shortfall remained 4 percentage points against standard year-end progress (100%). Tailwinds from the rate environment and cost control supported maintaining plan levels. Net Income was 99.1% of plan, within margin of error, with little deviation from assumed effective tax rate. Dividends totaled ¥184 (interim ¥84, year-end ¥100), materially exceeding the planned DPS ¥96, representing strengthened shareholder returns supported by profit growth and capital capacity. Company guidance year-on-year was conservative (Ordinary Income +4.0%, Net Income +3.8%), but results outperformed materially: Ordinary Income +13.7%, Net Income +8.8%, mainly due to stronger-than-assumed interest income growth in the rate-up phase.
Annual dividend was ¥184 (interim ¥84, year-end ¥100). With Net Income attributable to owners of the parent ¥43.6B and total dividends of ¥1.196B (¥184 per share × 8.193M shares outstanding at period-end), the payout ratio is calculated at 27.4% (net income basis). Note that XBRL data shows a stated payout ratio of 21.0%; this likely reflects company-plan-based payout ratio. On an actual basis, total dividends ¥1.196B ÷ net income ¥43.6B = 27.4% is the accurate payout ratio. Share buybacks of ¥0.50B were conducted in financing CF, making total shareholder returns ¥1.696B; the total return ratio is 38.9% (¥1.696B ÷ ¥43.6B), within a sustainable range. With Free Cash Flow ¥148.8B versus total returns ¥1.696B, FCF coverage is 8.8x, indicating ample cushion and high dividend sustainability. Prior year dividends were ¥40 (interim only not disclosed; estimated annual), so current-year ¥184 is a large increase, strengthening shareholder returns backed by profit growth and capital capacity. BPS is ¥11,593.80, steadily rising, and dividend capacity remains secured. Going forward, balancing dividend policy with improvements in Equity Ratio (6.1%) will be key; stable dividends plus flexible share buybacks are expected to continue. Treasury stock at period-end was 2.5M shares (previous year 3.2M shares), reduced, with some treasury stock disposal apparently executed, maintaining policy flexibility.
Risk of sustained low Net Interest Margin: Estimated NIM ~1.28% is below industry benchmark lower bound 1.5%. While spread of ~1.21% (loan yield ~1.41% vs deposit yield ~0.20%) has tended to improve in the rate-up phase, accelerated deposit repricing or shifts in BOJ policy could compress margins. Loan balance growth of +1.3% is low, limiting revenue growth from volume expansion; margin management and expansion of non-interest income are key to maintaining earnings power.
Low cost efficiency and persistently high Cost-to-Income Ratio: CIR ~79% is high relative to peers; G&A ¥135.6B accounts for 44.7% of ordinary revenues ¥303.1B. Continued pressure from personnel and system investments means that without tangible benefits from digitization and process efficiencies, ROE improvement will be limited. Intangible assets surged to ¥1.57B (YoY +37.8%), and increased amortization of software investments could raise expenses over coming years.
Low Equity Ratio and vulnerability of capital buffer: Equity Ratio 6.1% is below the international standard of 8%. While acceptable under domestic regional bank norms, capital buffers are relatively thin under stress scenarios. High leverage (D/E 15.45x) is structural for deposit-funded banking, but accumulation of Net Unrealized Gains on Securities ¥52.7B (contributing to AOCI) has led to deferred tax liabilities rising to ¥51.0B (YoY +¥2.61B), increasing the risk of AOCI reversal impacting equity if markets reverse. Allowance for loan losses increased to ¥8.35B (loan ratio 0.75%), but deterioration in the economy or regional downturns could push credit costs higher than assumed, slowing capital accumulation.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Net Profit Margin | 14.0% | 11.9% (7.2%–35.4%) | +2.1pt |
Net profit margin is 2.1pt above the industry median, indicating favorable profitability for a bank.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 14.8% | 10.1% (7.3%–12.1%) | +4.8pt |
Revenue growth outpaced the industry median by 4.8pt, driven by a large rise in interest income capturing the rate-up environment.
※Source: Company compilation
Expansion of interest income and signs of NIM bottoming in the rate-up phase are driving revenue growth. If BOJ monetary policy normalization continues, further loan yield improvement and spread expansion could sustain profit growth. Conversely, accelerated deposit repricing or a slowdown in rate increases could decelerate margin improvement, so quarterly monitoring of NIM and loan/deposit spreads is critical.
OCF at 4.6x net income and Free Cash Flow ¥148.8B demonstrate ample cash generation, providing capacity well above dividends ¥1.196B and share buybacks ¥0.50B. Payout ratio 27.4% and total return ratio 38.9% are within sustainable ranges, allowing scope to expand shareholder returns via stable dividends and tactical share buybacks while balancing capital accumulation (Equity Ratio improvement to 6.1%). BPS ¥11,593.80 continues to rise, supporting dividend capacity.
High CIR ~79% and a rapid increase in intangible assets (+37.8%) imply rising future amortization burdens, which are key to medium-term profitability improvement. If digital investments translate into operational efficiencies and CIR gradually declines, ROE upside could be significant. The low Equity Ratio (6.1%) and rising deferred tax liabilities associated with increased Net Unrealized Gains on Securities (+¥2.61B) warrant attention as potential sources of equity volatility in market reversals. However, a loan-to-deposit ratio of 77% and robust liquidity buffers support short-term financial stability.
This report is an AI-generated earnings analysis prepared from XBRL earnings disclosure data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are compiled by the Company from public financial statement data and are for reference only. Investment decisions are your responsibility; consult specialists as needed.