The Gunma Bank (8334) Q3 2024 earnings summary

Executive summary

• Nine-month ordinary profit rose 14.2% YoY to ¥33.9bn and profit attributable to owners of parent increased 10.8% to ¥24.6bn, supported by higher interest income and lower net credit costs.

• Core net business profit excluding bond gains or losses and investment-trust cancellations increased ¥2.9bn YoY to ¥33.6bn, reflecting higher loan interest and non-interest business profit plus expense reductions.

Financial highlights

• Ordinary income increased 17.6% YoY to ¥156.1bn; ordinary expenses rose to ¥122.2bn, mainly from higher interest expenses.

• Net interest income was ¥51.0bn, down ¥4.1bn YoY; loan interest increased ¥7.7bn to ¥50.8bn, while securities interest and dividends rose ¥8.7bn to ¥27.9bn.

• Comprehensive income was ¥37.3bn versus a ¥39.1bn loss a year earlier, as available-for-sale securities valuation changes shifted to ¥12.5bn of income from a ¥61.0bn loss.

• Basic EPS was ¥61.84 versus ¥54.13 a year earlier.

Outlook and guidance

• FY2023 consolidated forecast was raised: ordinary profit to ¥42.0bn from ¥40.0bn and profit attributable to owners of parent to ¥30.0bn from ¥28.0bn; forecast YoY growth is 9.6% and 7.4%, respectively.

• Revised consolidated forecast includes core net business profit of ¥38.5bn, excluding bond gains or losses, and ¥43.3bn excluding both bond gains or losses and investment-trust cancellations.

• Profit attributable to owners of parent reached 82.1% of the revised ¥30.0bn FY forecast through December.