Towa Bank Revises Forecast — Net Loss Narrows to △JPY 29.5bn on Portfolio Restructuring
Towa Bank (TSE:85580) has revised its fiscal year 2026 (ending March 2026) earnings forecast. The net loss improves modestly while ordinary profit holds steady, as the bank takes action on its securities portfolio in response to rising domestic interest rates.
| Item | Before | After | Change |
|---|---|---|---|
| Ordinary Profit (Consolidated) | JPY 3,500M | JPY 3,500M | unchanged |
| Net Profit (Consolidated) | △JPY 33,500M | △JPY 29,500M | +JPY 4,000M (+11.9%) |
| Ordinary Profit (Non-consolidated) | JPY 3,500M | JPY 3,500M | unchanged |
| Net Profit (Non-consolidated) | △JPY 33,500M | △JPY 29,500M | +JPY 4,000M (+11.9%) |
Note: Prior-year actuals (FY2025): ordinary profit JPY 6,389M / net profit JPY 4,520M (profitable year).
Rising domestic interest rates have expanded unrealised losses on the bank’s securities holdings, driving a large net loss despite stable ordinary profit of JPY 3.5bn. In Q4, the bank is accelerating portfolio restructuring — selling bonds and shifting to shorter-duration assets — to reduce interest rate sensitivity and rebuild profitability.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.