The Gunma Bank (8334) Q2 2024 earnings summary

Executive summary

• Core net business profit excluding bond gains/losses and investment-trust cancellations reached ¥23.4bn, up ¥2.1bn YoY; profit attributable to owners of parent was ¥14.9bn, up 7.7%.

• Loans and bills discounted rose ¥383.6bn YoY to ¥6,244.7bn; first-half non-interest business profit reached a record ¥12.7bn.

Financial highlights

• Consolidated core gross profit was ¥47.6bn, up ¥1.0bn YoY; net interest income was ¥34.9bn and non-interest business profit was ¥12.8bn.

• Consolidated expenses were ¥25.9bn, down ¥0.7bn YoY; ordinary profit was ¥19.7bn, up 8.1%.

• Net credit costs were a ¥0.9bn credit, versus ¥2.4bn of costs a year earlier.

• Net interest income excluding investment-trust cancellation losses was ¥36.6bn, up ¥1.7bn YoY; loan interest income increased ¥5.0bn, partly offset by ¥2.1bn in cancellation losses.

• Comprehensive income was ¥15.6bn, compared with a ¥28.6bn loss in H1 FY2022; basic EPS was ¥37.14, up from ¥33.58.

Outlook and guidance

• FY2023 consolidated guidance remained ¥40.0bn ordinary profit and ¥28.0bn profit attributable to owners of parent.

• FY2023 forecast core business net profit excluding investment-trust cancellation gains/losses was ¥41.4bn; consolidated non-interest business profit forecast was ¥22.8bn.

• FY2023 annual dividend forecast increased to ¥22 per share, comprising ¥10 interim and ¥12 year-end.