The Shiga Bank (8366) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated net income of ¥187 billion for FY2025, up ¥27 billion year-over-year.

• ROE improved to 4.0%, with a target of 6% set for the next mid-term plan.

• Ordinary income rose 8.5% year-over-year to ¥133,109 million for the fiscal year ended March 31, 2025.

• Profit attributable to owners of parent increased 17.4% year-over-year to ¥18,720 million.

• Comprehensive income turned negative at ¥(38,097) million, mainly due to valuation losses on securities.

Financial highlights

• Consolidated gross operating profit decreased by ¥37 billion to ¥608 billion year-over-year.

• Net interest income rose by ¥80 billion to ¥632 billion, driven by higher loan interest.

• Operating expenses reduced by ¥64 billion to ¥464 billion.

• Ordinary profit decreased 20.9% year-over-year to ¥18,949 million.

• Net assets declined to ¥444,811 million from ¥490,887 million year-over-year.

Outlook and guidance

• FY2026 targets: consolidated net income of ¥200 billion, gross operating profit of ¥671 billion.

• FY2026 forecast: ordinary profit of ¥20,000 million (+6.8% YoY), profit attributable to owners of parent ¥28,300 million (+49.3% YoY), and basic EPS of ¥434.01.

• ROE target raised to 6% by FY2029, with phased increases in profitability and capital efficiency.

• Dividend forecast for FY2026 is ¥130 per share, up from ¥90 per share in FY2025.

• Continued investment in digital systems and human capital to drive growth.