The Hyakugo Bank (8368) Q4 2026 earnings summary

Executive summary

• Consolidated net income attributable to shareholders rose 48.8% year-over-year, reaching a record high for the second consecutive year.

• Ordinary income increased 30.4% year-over-year to ¥162,399 million, driven by higher interest income and gains on equity securities sales.

• FY 3/2027 forecasts project record-high profit for the third consecutive year, with both consolidated and non-consolidated profit expected to increase.

• Comprehensive income surged to ¥89,786 million from a loss the prior year, reflecting improved securities valuations and pension remeasurements.

• Annual dividend is scheduled to increase by 8 yen per share, marking the seventh consecutive year of dividend increases.

Financial highlights

• Gross operating income increased, driven by a 16.8% year-over-year rise in interest income from loans and securities.

• Total assets expanded to ¥7,630,605 million, up from ¥7,433,220 million year-over-year.

• Fees and commissions decreased 13.4% year-over-year due to lower housing-loan-related fees.

• Expenses grew 6.3% year-over-year, mainly from base salary increases and DX investments.

• Loans increased 2.5% year-over-year, led by growth in housing loans in Aichi Prefecture.

Outlook and guidance

• FY 3/2027 net income is forecast to reach a record high for the third consecutive year.

• For FY2027, consolidated ordinary profit is forecast at ¥41.2 billion (+11.3% YoY), and profit attributable to owners of parent at ¥28.9 billion (+7.7% YoY).

• Despite expected declines in interest income and fees, higher gains from government and other bonds are projected to drive profit growth.

• Dividend per share is expected to rise to ¥42.00 for FY2027.