The Gunma Bank (8334) Q2 2025 earnings summary

Executive summary

• H1 core business net profit excluding investment-trust cancellation gains/losses was ¥26.1bn, up ¥2.7bn YoY; net profit attributable to owners reached ¥22.9bn, up ¥8.0bn and a record high.

• H1 ordinary profit rose ¥12.5bn YoY to ¥32.2bn, supported by higher loan interest income and securities gains; credit costs remained low.

Financial highlights

• H1 consolidated core business gross profit was ¥51.9bn, up ¥4.2bn YoY; net interest income was ¥38.7bn, up from ¥34.9bn, and non-interest business profit was ¥13.2bn, up ¥0.4bn.

• Consolidated expenses were ¥27.6bn, up ¥1.6bn YoY; ordinary expenses fell to ¥78.5bn from ¥86.7bn, mainly on lower bond-sale losses.

• Investment securities gains were ¥6.4bn, up ¥9.9bn YoY; net credit costs were ¥0.1bn, down ¥1.3bn.

• Profit before income taxes was ¥31.9bn versus ¥19.4bn; basic EPS was ¥58.94 versus ¥37.14 YoY.

• Comprehensive income declined to ¥7.2bn from ¥15.6bn, reflecting a ¥15.7bn loss in available-for-sale securities valuation differences.

Outlook and guidance

• FY2024 consolidated profit attributable to owners guidance rose to ¥40.0bn from ¥35.0bn; ordinary profit forecast increased to ¥57.5bn from ¥51.5bn.

• FY2024 non-consolidated ordinary profit forecast rose to ¥52.0bn from ¥45.5bn, and profit forecast to ¥36.0bn from ¥31.0bn.

• FY2024 core business net profit excluding bond gains/losses and investment-trust cancellations is forecast at ¥53.5bn consolidated and ¥48.0bn non-consolidated.

• FY2024 consolidated net interest income is forecast at ¥79.5bn, up ¥13.5bn YoY; non-interest business profit is projected at ¥27.0bn, revised up from ¥26.0bn.

• FY2024 net credit cost guidance was reduced from ¥3.0bn to ¥1.8bn; forecasts depend on available information and assumptions, and actual results may differ with economic conditions and stock prices.