The Gunma Bank (8334) Q2 2027 earnings summary

Executive summary

• Core business net profit excluding investment trust cancellation gains rose ¥7.3bn YoY to ¥41.7bn; parent profit rose ¥7.0bn to a third consecutive record of ¥34.9bn.

• Higher net interest income and non-interest business profit supported results; FY2027 forecasts were raised.

Financial highlights

• Consolidated core business gross profit was ¥78.8bn, up ¥12.3bn YoY; net interest income was ¥61.6bn, up ¥10.0bn.

• Non-interest business profit rose ¥2.3bn YoY to ¥17.1bn; expenses increased ¥2.0bn to ¥31.4bn.

• H1 ordinary income rose 13.8% YoY to ¥149.8bn; ordinary profit was ¥51.6bn, up 27.1%.

• Comprehensive income was ¥15.3bn versus ¥51.5bn a year earlier, reflecting lower other comprehensive income, chiefly securities valuation.

Outlook and guidance

• FY ending March 2027 forecasts: core business net profit excluding trust cancellation gains of ¥85.5bn and parent profit of ¥67.5bn, respectively ¥3.5bn and ¥2.5bn above initial plans.

• Forecast ordinary profit is ¥100.0bn, non-interest business profit ¥35.0bn and net credit costs ¥5.0bn.

• Forecast OHR is 43.5%; ROE is 10.7%; basic EPS is ¥178.32.