The Shimane Bank,Ltd. Revises Earnings Forecast — Revenue Up 15.9%
The Shimane Bank,Ltd. (TSE:7150) has raised its consolidated earnings guidance for the fiscal year ending March 2026, citing stronger-than-expected lending income and asset sales gains, though ordinary income (keijo rieki) is expected to decline.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| Ordinary Revenue | 10.56bn | 12.24bn | +1.68bn | +15.9% |
| Ordinary Income | 0.41bn | 0.41bn | −0.04bn | −8.8% |
| Net Profit (Parent) | 0.37bn | 0.37bn | — | — |
| EPS | JPY 30.78/share | JPY 30.87/share | +0.09 | — |
On a non-consolidated basis, the bank now projects ordinary revenue of 9.83bn, up 10.6% from its prior 8.88bn forecast. However, non-consolidated ordinary income is expected to fall to 0.38bn from 0.41bn, and net profit to 0.34bn from 0.35bn. The bank attributed the upward revenue revision to higher lending interest income and gains from loan securitization sales exceeding initial expectations. Offsetting these gains are larger-than-anticipated deposit interest expenses and securities sale losses. At the consolidated level, improved performance from subsidiary operations is providing additional support.
The revision reveals a structural challenge: while revenue growth is robust, profit conversion remains constrained. The 15.9% revenue increase translates to only a modest EPS gain of 0.09 yen, signaling margin pressure. The ordinary income decline on both consolidated and non-consolidated bases underscores the headwinds from rising funding costs and investment losses. Investors should note that consolidated results are buoyed by subsidiary strength, whereas the parent bank’s profitability metrics are deteriorating, suggesting uneven performance across the group.
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.