The Chiba Bank (8331) Q1 2027 earnings summary

Executive summary

• Achieved record-high net income and ordinary profit for the sixth consecutive first quarter, with ordinary income rising 41.4% year-over-year to ¥145.3 billion, driven by higher interest income and improved loan yields.

• Ordinary profit increased 34.5% year-over-year to ¥41.8 billion, and profit attributable to owners of parent grew 37.2% to ¥29.9 billion.

• Gross business profit rose 25% year-over-year, supported by higher loan balances and policy rate hikes.

• Comprehensive income reached ¥64.3 billion, up 39.6% year-over-year.

Financial highlights

• Net interest income surged by ¥36.7 billion year-over-year to ¥82.2 billion, reflecting a 75.2% increase, with notable gains from investment trust cancellations.

• Net fees and commissions income increased to ¥11.5 billion, up ¥2.3 billion year-over-year, supported by corporate solutions and financial product sales.

• General and administrative expenses rose by ¥2.5 billion to ¥26.4 billion, but the OHR improved significantly, dropping by over 16 percentage points year-over-year.

• Profit per share for the quarter was ¥43.16, up from ¥30.79 a year earlier.

Outlook and guidance

• FY2026 plan targets further growth in net interest income, with full-year ordinary profit forecast at ¥154.3 billion (+11.1% year-over-year) and profit attributable to owners of parent projected at ¥107.0 billion (+13.7%).

• No changes to the previously announced earnings and dividend forecasts; profit per share for the full year is forecast at ¥155.40.

• Shareholder return policy includes a dividend payout ratio of 40% or more and flexible share buybacks, with a recent resolution to acquire up to ¥15.0 billion in own shares.