The Gunma Bank (8334) Q4 2024 earnings summary

Executive summary

• FY ended Mar. 31, 2024 ordinary income was ¥200.4bn, ordinary profit ¥43.8bn and profit attributable to owners of parent ¥31.1bn; each increased YoY.

• Profit reached a record ¥31.1bn, exceeding the ¥30.0bn medium-term plan target one year early.

Financial highlights

• Ordinary income rose ¥23.8bn YoY, mainly on higher interest income; ordinary expenses increased ¥18.3bn, mainly on higher interest expenses.

• Core net business profit excluding bond gains/losses and investment-trust cancellations was ¥45.5bn, up ¥5.6bn YoY; non-interest business profit increased ¥3.2bn to ¥24.2bn.

• Net interest income declined ¥5.4bn to ¥66.0bn; investment securities gains were ¥5.7bn versus a ¥1.8bn loss, including ¥30.3bn in gains on stocks and other securities and ¥24.6bn in bond losses.

• Profit attributable to owners of parent was ¥31.1bn, up ¥3.2bn YoY; basic EPS was ¥78.43 versus ¥68.19.

• Total assets reached ¥10,818.2bn; loans and bills discounted increased ¥414.7bn to ¥6,406.1bn, while deposits rose ¥258.4bn to ¥8,303.3bn.

Outlook and guidance

• FY2024 forecast: consolidated ordinary profit ¥51.5bn and profit attributable to owners of parent ¥35.0bn; basic EPS ¥89.17.

• Forecast core net business profit excluding bond gains/losses and investment-trust cancellations is ¥50.0bn consolidated and ¥44.0bn non-consolidated.

• FY2024 annual dividend forecast is ¥28 per share, comprising ¥14 interim and ¥14 year-end; forecast earnings may differ due to economic conditions and other factors.