The Shiga Bank (8366) Q4 2026 earnings summary

Executive summary

• Consolidated net income reached a record high of ¥21.2 billion, marking two consecutive years of record profits, driven by strategic asset allocation and anticipation of a higher interest rate environment.

• Ordinary income rose 19.5% year-over-year to ¥159,056 million, with ordinary profit up 53.2% to ¥29,031 million and profit attributable to owners of parent up 13.7% to ¥21,293 million.

• Comprehensive income swung from a loss of ¥38,097 million to a gain of ¥70,627 million year-over-year.

• Both loans and deposits grew, with business and consumer loans as well as individual and corporate deposits on an upward trend.

• Subsidiary performance improved, contributing ¥1.0 billion in group company earnings.

Financial highlights

• Gross business profit (non-consolidated) rose to ¥64.1 billion (+¥5.9 billion YoY); consolidated gross business profit was ¥66.5 billion (+¥5.7 billion YoY).

• Interest income grew from ¥86,633 million to ¥102,353 million, and interest on loans and discounts increased from ¥49,319 million to ¥59,842 million year-over-year.

• Net fees and commissions declined slightly to ¥9.8 billion (non-consolidated) and ¥12.5 billion (consolidated), with corporate consulting fees at a record high but individual consulting fees down.

• Expenses increased to ¥48.4 billion (non-consolidated) and ¥50.4 billion (consolidated), mainly due to investments in human capital and systems.

• Net cash provided by operating activities was ¥2,357 million, a significant improvement from a negative ¥405,676 million the previous year.

Outlook and guidance

• For FY2027, both sales and profit are forecast to increase, with a record-high consolidated profit of ¥28.5 billion expected, driven by further net interest income growth.

• Ordinary profit is forecast at ¥28,500 million and profit attributable to owners of parent at ¥20,900 million, with basic EPS projected at ¥62.21.

• Gross business profit is projected to rise to ¥86.1 billion, and net interest income to ¥83.1 billion.

• Dividend per share forecast for FY2027 is ¥50.00, reflecting a payout ratio of 40.3%.

• Credit costs are forecast to rise to ¥3.2 billion, reflecting potential risks from price increases, geopolitical tensions, and market volatility.