The Chiba Bank (8331) Q1 2025 earnings summary

Executive summary

• Gross business profit rose by ¥4.8B year-over-year, reaching a record Q1 high, driven by strong net interest income and steady international growth.

• Ordinary income rose 16.0% year-over-year to ¥88.0B, driven by higher interest income.

• Ordinary profit increased 10.7% to ¥28.7B, and profit attributable to owners of parent grew 8.8% to ¥20.0B.

• Net income on a non-consolidated basis hit a record, achieving 35.1% progress toward the annual plan; consolidated net income increased for the fourth straight quarter, at 29.4% of plan.

• Net income reached 57.2% of the six-month projection, indicating strong progress toward FY2024 targets.

Financial highlights

• Consolidated net interest income increased by ¥5.1B–¥5.2B year-over-year to ¥39.1B–¥39.2B; net fees and commissions up ¥0.2B–¥0.3B.

• Consolidated ordinary profit rose by ¥2.7B to ¥28.7B; profit attributable to owners of parent up ¥1.6B to ¥20.0B year-over-year.

• Credit-related expenses increased by ¥1.7B to ¥2.3B; non-performing loan ratio remained low at 0.90%, down 0.01% year-over-year.

• G&A expenses increased by ¥0.7B–¥0.8B to ¥23.7B–¥23.8B; consolidated OHR improved to 45.35%, down 3.17% year-over-year.

• Total assets increased by ¥808.5B to ¥22,117.3B as of June 30, 2024; loans and bills discounted rose to ¥12,927.3B, up ¥126.3B from March 2024.

Outlook and guidance

• Progress toward full-year net income plan at 29.4% on a consolidated basis and 35.1% on a non-consolidated basis after Q1.

• FY2024 full-year profit attributable to owners of parent forecast at ¥68.0B, up 8.9% year-over-year.

• Interim dividend forecast raised to ¥18.00 per share, with full-year dividend projected at ¥36.00 per share.

• Interest rate rise simulations indicate potential for further profit and ROE increases under higher policy rates.

• No changes to the previously announced earnings forecast; actual results may differ due to various factors.