The Gunma Bank (8334) Q1 2024 earnings summary

Executive summary

• Q1 ordinary income rose 19.0% YoY to ¥54,785m; ordinary profit increased 5.3% to ¥12,566m and profit attributable to owners of parent rose 4.7% to ¥9,016m.

• Core net business profit declined ¥414m YoY to ¥11,988m, while gains on investment securities and lower net credit costs supported higher ordinary profit.

Financial highlights

• Ordinary income increased ¥8,754m YoY, mainly on higher interest income; ordinary expenses rose ¥8,120m, mainly on higher interest expenses.

• Interest expense was ¥9,011m versus ¥1,234m YoY; interest income was ¥27,634m versus ¥20,850m.

• Comprehensive income was ¥24,656m, compared with a loss of ¥18,754m in Q1 FY2023, driven primarily by securities valuation changes.

• Consolidated net assets increased ¥16.0bn during the quarter to ¥531.8bn; total assets rose ¥90.5bn to ¥10,752.8bn.

Outlook and guidance

• FY2024 forecasts remain unchanged: ordinary profit ¥20bn for the six months to Sep. 30 and ¥40bn for the year; profit attributable to owners of parent ¥14bn and ¥28bn, respectively.

• Forecast basic EPS is ¥34.98 for the six months and ¥70.20 for FY2024; forecast annual dividend is ¥20 per share, including ¥10 at interim and year-end.

• Q1 achievement against FY2024 forecasts was 60.2% for core net business profit and 64.4% for profit attributable to owners of parent.