The Gunma Bank (8334) Q4 2025 earnings summary

Executive summary

• FY2025 core business net profit excluding investment trust cancellation gains/losses reached a record ¥55.5bn, up ¥10.0bn YoY; attributable net profit rose to ¥43.9bn, marking a second consecutive record.

• Higher loan interest income and non-interest business profit supported results; ROE rose to 7.7%.

Financial highlights

• Consolidated core gross business profit was ¥107.7bn, up ¥17.4bn YoY; net interest income was ¥82.1bn, up ¥16.1bn, and non-interest business profit was ¥25.6bn, up ¥1.3bn.

• Ordinary profit reached ¥62.0bn, up ¥18.2bn; investment securities gains were ¥8.5bn and net credit costs were ¥2.3bn.

• Deposits were ¥8,672.4bn, up ¥150.1bn YoY; loans were ¥6,845.1bn, up ¥377.2bn, or 5.8%.

• Non-interest business profit rose for a sixth consecutive year to ¥25.6bn; corporate service revenue increased ¥2.06bn to ¥9.63bn, including derivative revenue of ¥3.07bn, up ¥1.42bn.

• FY2024 consolidated total assets declined ¥261.0bn to ¥10,557.2bn; loans rose ¥363.2bn to ¥6,769.3bn and deposits increased ¥146.1bn to ¥8,449.4bn.

Outlook and guidance

• FY2026 consolidated core business net profit excluding investment trust cancellations is forecast at ¥64.5bn, up ¥9.0bn YoY; attributable net profit is forecast at ¥49.0bn and ROE at 8.6%.

• FY2026 forecasts include ordinary profit of ¥70.0bn, non-interest business profit of ¥29.0bn, net credit costs of ¥4.0bn and OHR of 47.8% excluding investment trust cancellations.

• FY2027 targets include core business net profit of ¥80.0bn, non-interest income of ¥35.0bn, attributable net profit of ¥60.0bn, ROE of at least 10.0%, RORA of at least 1.2% and OHR of ~45%.

• FY2026 forecasts assume a policy rate increase from 0.50% to 0.75% in October 2025.