THE TOWA BANK,LTD. FY2026 Q2 earnings report and financial analysis
/
About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Ordinary Income | ¥3.02B | ¥2.07B | +46.0% |
| Net Income | ¥3.12B | ¥1.18B | +164.3% |
| Net Income Attributable to Owners | ¥3.13B | ¥1.20B | +161.5% |
| Total Comprehensive Income | ¥3.66B | ¥-1.87B | +296.3% |
| Basic EPS | ¥87.19 | ¥32.29 | +170.0% |
| Diluted EPS | ¥86.19 | ¥28.01 | +207.7% |
| Dividend Per Share | ¥0.00 | ¥0.00 | - |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Total Assets | ¥2.40T | ¥2.38T | +¥19.55B |
| Total Equity | ¥92.56B | ¥91.17B | +¥1.39B |
| Owners' Equity | ¥91.81B | ¥90.38B | +¥1.43B |
| Item | YoY Change |
|---|---|
| Ordinary Income YoY Change | +45.9% |
| Net Income YoY Change | +1.6% |
| Net Income Attributable to Owners YoY Change | +1.6% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 37.18M shares |
| Treasury Stock | 1.74M shares |
| Average Shares Outstanding | 35.87M shares |
| Book Value Per Share | ¥2,611.78 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥0.00 |
| Year-End Dividend | ¥35.00 |
| Item | Forecast |
|---|---|
| Ordinary Income Forecast | ¥3.50B |
| Net Income Forecast | ¥3.50B |
| Net Income Attributable to Owners Forecast | ¥3.50B |
| Basic EPS Forecast | ¥98.17 |
| Dividend Per Share Forecast | ¥35.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Towa Bank (Consolidated, JGAAP) reported FY2026 Q2 net income of ¥3,127 million, up 161.4% year on year, indicating a sharp recovery in bottom-line profitability despite flat operating/ordinary profit disclosure. Ordinary income and operating income were both reported at ¥3,016 million, suggesting the core profit line (keijo-rieki) was stable, while below-the-line factors likely lifted net income. With income tax expense of ¥752 million, we infer a rough pre-tax profit of about ¥3,879 million, implying an estimated effective tax rate near 19–20%, though this is approximate given limited line-item detail. Total assets were ¥2,402,304 million and total equity ¥92,556 million, implying an equity-to-asset ratio of about 3.85% and financial leverage around 26x, consistent with a regional bank balance sheet. Using period-end equity as a rough proxy, half-year ROE is approximately 3.4%, which annualizes to roughly 6.8% if profitability is maintained in the second half. The gap between flat ordinary income and a sharp increase in net income suggests positive non-recurring items and/or lower credit costs; the exact drivers are not disclosed. Cash flow statements and revenue-related line items were not reported in the XBRL under the presented tags, limiting analysis of cash flow quality and interest/fee income mix. Liquidity ratios based on current assets/liabilities and standard manufacturing metrics (gross margin, EBITDA) are not meaningful for banks and appear unreported, not zero. Capital structure remains typical for a regional bank, with liabilities of ¥2,291,582 million (liabilities-to-equity of ~24.8x). EPS was ¥87.19, but outstanding shares were not disclosed, restricting cross-checks between EPS and net income. The bank’s fundamental outlook hinges on net interest margin stability, credit cost normalization, and securities portfolio valuation amid interest rate volatility. Dividend data were not disclosed; therefore, payout and coverage cannot be assessed from the provided dataset. Given the strong rebound in net income versus flat ordinary income, sustainability will depend on whether the positive drivers are recurring. Overall, results point to resilient core earnings and a notable improvement in bottom-line profitability, but the absence of cash flow and segment detail constrains assessment of quality and durability. We highlight capital adequacy, credit cost trajectory, and securities valuation sensitivity as key monitoring points. Data limitations require cautious interpretation, especially for DuPont breakdown and cash flow quality.
roe_decomposition: Computed using available figures and banking context: Estimated half-year ROE ≈ Net income / period-end equity = ¥3,127m / ¥92,556m ≈ 3.4%; annualized ≈ 6.8% if H2 trends persist. Financial leverage ≈ Assets/Equity = ¥2,402,304m / ¥92,556m ≈ 25.95x (close to provided 25.96). Traditional DuPont components using revenue and gross margin are not applicable for banks; net interest margin and fee income share are the appropriate drivers but were not disclosed. The reported DuPont ‘0%’ figures are artifacts of unreported items, not true zeros. margin_quality: Ordinary income (¥3,016m) was flat YoY per disclosure, while net income rose sharply to ¥3,127m (+161.4% YoY), indicating improvements below the ordinary line (e.g., extraordinary gains/loss normalization, tax effects) or reduced credit costs. Estimated effective tax rate ≈ 19–20% (¥752m / inferred pre-tax ~¥3,879m), lower than typical statutory rates, which may reflect deferred tax impacts or credits; details not disclosed. operating_leverage: With ordinary income flat and net income up, operating leverage from core income appears limited this period; the delta likely stems from non-operating items or lower credit costs rather than volume-driven operating leverage. Absent revenue/expense breakdown (NIM, fees, OHR), we cannot quantify operating leverage.
revenue_sustainability: Revenue lines are unreported under the provided tags; for banks, interest income, fees, and trading gains would drive the topline. Ordinary income stability suggests core P&L was steady YoY, implying underlying revenue and expenses were broadly balanced. profit_quality: The divergence between ordinary income (flat) and net income (+161% YoY) indicates non-recurring or below-the-line tailwinds. Without credit cost disclosure (net credit costs, NPL coverage) or securities realized/unrealized gains, persistence of the net income uplift is uncertain. outlook: If the improvement reflects normalized or lower credit costs and manageable securities valuation impacts, H2 could sustain mid-to-high single-digit annualized ROE. However, interest rate volatility and credit normalization remain key variables; sustainability depends on NIM resilience, fee income contribution, and controlled credit costs.
liquidity: Current/quick ratios are not meaningful for banks and were unreported. Funding/liquidity health typically assessed via loan-to-deposit ratio and high-quality liquid assets; these were not disclosed. solvency: Equity-to-asset ratio ≈ 3.85% (¥92,556m / ¥2,402,304m). Liabilities-to-equity ≈ 24.8x (¥2,291,582m / ¥92,556m). Regulatory capital metrics (CET1, total capital, leverage ratio) were not provided; thus, we cannot comment on Basel III buffers. capital_structure: Balance sheet leverage (assets/equity ~26x) is consistent with a regional bank profile. Without details on subordinated debt or AFS/HTM securities OCI, sensitivity to rate moves cannot be quantified.
earnings_quality: Operating, investing, and financing cash flows were not disclosed; hence, accrual vs. cash conversion cannot be assessed. For banks, cash flow quality is better evaluated via credit cost cash impacts and deposit/loan flows, which are unavailable. fcf_analysis: Free cash flow is not a meaningful construct for banks in the manufacturing sense and was unreported. We defer to earnings retention and regulatory capital generation as proxies, but CET1/retained earnings data are missing. working_capital: Working capital metrics are not applicable to banks; deposit and loan dynamics would be the key working capital analogs, which were not provided.
payout_ratio_assessment: Dividend per share and payout ratio were not disclosed in the provided data; therefore, we cannot calculate payout against EPS of ¥87.19. fcf_coverage: Free cash flow coverage is not applicable for banks and was not disclosed; assessment would normally reference earnings stability and capital adequacy, which are not available here. policy_outlook: Without historical payout policy or capital adequacy disclosures, we cannot infer dividend capacity. Near-term sustainability hinges on maintaining current earnings and regulatory capital buffers.
Business Risks:
Financial Risks:
Key Concerns:
Key Takeaways:
Metrics to Watch:
Relative Positioning: On limited disclosures, Towa Bank appears consistent with a typical regional bank balance sheet profile and a mid-single-digit to high-single-digit annualized ROE run-rate if H2 is steady; however, clarity on core drivers (NIM, credit costs, capital) is below that of best-disclosed regional peers.
This analysis was auto-generated by AI. Please note the following: