The Gunma Bank (8334) Q1 2025 earnings summary

Executive summary

• Q1 ordinary income rose 3.5% YoY to ¥56.7bn; ordinary profit increased 27.6% to ¥16.0bn and profit attributable to owners rose 23.8% to ¥11.2bn.

• Adjusted core business net profit was ¥13.4bn, up ¥1.3bn YoY; core net business profit excluding bond gains/losses and investment-trust cancellations was ¥13.5bn, up 11.3%.

Financial highlights

• Consolidated core business gross profit was ¥25.7bn, up ¥0.7bn YoY; non-consolidated net interest income was ¥19.2bn, up ¥0.5bn, or ¥20.6bn excluding investment-trust cancellation losses.

• Consolidated non-interest business profit rose ¥0.2bn YoY to ¥6.7bn; ordinary expenses declined ¥1.5bn to ¥40.7bn, while interest expenses increased to ¥12.3bn from ¥9.0bn.

• Profit before income taxes was ¥15.9bn; total income taxes were ¥4.7bn and basic EPS was ¥28.59, versus ¥22.37 YoY.

• Comprehensive income was negative ¥5.2bn versus positive ¥24.7bn YoY, primarily reflecting a ¥15.9bn loss in valuation differences on available-for-sale securities.

Outlook and guidance

• FY2025 guidance remained unchanged: ordinary profit ¥51.5bn, profit attributable to owners ¥35.0bn and EPS ¥90.11; H1 forecasts were ¥25.5bn, ¥17.5bn and ¥44.98, respectively.

• Q1 achievement was 26.9% of the annual adjusted core business net profit forecast and 31.8% of the annual parent-attributable profit forecast.

• FY2025 dividend forecast was ¥28 per share, split evenly between the second-quarter end and fiscal year-end; no revision was made.

• Corporate service revenue forecast for September 2024 was raised to ¥4.3bn from the initial ¥4.0bn plan, with potential Jul–Sep deals expected to contribute.