Shiga Bank, Ltd. · TSE:8366
Shiga Bank — 1H FY2025 Earnings Presentation
45 slides from Shiga Bank's earnings presentation, November 2025
Slide 1: Summary of Financial Results for the First Half of the FY2025
Summary of Financial Results for the First Half of the FY2025 NOV 2025 Copyrights © SHIGA BANK, ltd. All Rights Reserved.
Slide 2: Index
Index ■Summary of Financial Results for 1H of the FY2025 C. Strategies for Finance（Structured Finance etc.） 24 Key Messages 3 D. Strategies for Securities 25 Income Statement Overview (1) 4 D. Strategies for Securities (Details) 26 Income Statement Overview (2) 5 E. Group Strategy and New Business 2
Slide 3: Key Messages
Key Messages ■Summary of Financial Results for 1H of the FY2025 ‣ Consolidated Profit was 11.3 billion yen (up 2.6 billion yen YoY), showing steady progress [Progress rate: 56.5%]. - Net interest income (non-consolidated) increased by 6.0 billion yen YoY to 37.2 billion yen, driven by strategic allo
Slide 4: Income Statement Overview (1)
Income Statement Overview (1) ■ Financial Results(non-consolidated) ■ Gross business profit 【Units：billion yen】 (non-consolidated) ＃ 2024.9 2025.9 YoY 【Units：billion yen】 80.0 Gross business profit 1 33.9 36.1 2.2 58.2 Net interest income 2 31.2 37.2 6.0 61.8 45.5 Interest on loans and discounts 3 2
Slide 5: Income Statement Overview (2)
Income Statement Overview (2) ■ Financial Results (consolidated) ■ Group Earnings 【Units：billion yen】 【Units：billion yen】 2.0 2.0 (consolidated) # 2024.9 2025.9 YoY 1.3 1.4 Gross business profit (Topline) 1 35.1 37.3 2.1 Consolidated– Standalone 1.5 1.1 1.2 Difference 0.4 Net interest income 2 30.7
Slide 6: Deposits and Loans
Deposits and Loans ■ Deposits（balance） ■ Loans（balance） 【Units：billion yen】 【Units：billion yen】 7,000 7,000 5,846.6 5,847.3 5,856.3 6,000 5,672.3 5,762.4 5,467.4 6,000 686.8 682.1 664.3 691.9 Others 4,563.2 4,562.4 5,000 697.6 692.2 5,000 4,360.2 4,495.1 4,020.2 4,082.7 4,000 4,000 Shiga 1,897.8 1,9
Slide 7: Fees and Commissions / Expenses
Fees and Commissions / Expenses ■ Principal fees（Corporate） ■ Principal fees（Individual） 【Units: million yen】 【Units: million yen】 3,487 6,229 3,033 3,149 2,855 6,000 5,354 3,000 4,599 1,846 2,469 1,612 4,299 1,494 1,316 1,342 1,577 2,082 3,685 357 4,000 2,000 984 1,341 3,018 Housing 1,488 858 Solut
Slide 8: Securities Portfolio Overview
Securities Portfolio Overview ■ Balance (Market Value) 【Units：billion yen】 ● Yield on Securities 2021.3 2022.3 2023.3 2024.3 2025.3 2025.9 vs. FY-end Yield on securities 10Y JGB 1Y JGB 【Units:％】 Government bonds 319.7 334.7 324.2 538.1 506.3 475.9 ▲30.3 2.50 2.14 Local government bonds 255.7 198.1 2
Slide 9: Securities Portfolio Overview (Bond Investments)
Securities Portfolio Overview (Bond Investments) ■ Bond Gains/Losses 【Units：billion yen】 ■ Valuation on JPY Bonds 【Units：billion yen】 2023.3 2024.3 2025.3 2024.9 2025.9 2023.3 2024.3 2025.3 2025.9 vs. FY-end Bond Interest 4.5 6.3 7.8 3.6 4.8 JPY Bonds (incl. Held-to-Maturity) ▲16.2 ▲33.9 ▲64.4 ▲64.9
Slide 10: Credit Costs and FRA Disclosed Claims
Credit Costs and FRA(Financial Reconstruction Act) Disclosed Claims ■ Credit costs ■ FRA Disclosed Claims・NPL Ratio 【Units：billion yen】 【Units：billion yen】 2021.3 2022.3 2023.3 2024.3 2025.3 2024.9 2025.9 120.0 NPL Ratio（％） 2.01 Credit costs 7.5 2.0 2.0 3.1 4.2 2.2 1.0 1.91 1.86 100.0 1.77 Provision
Slide 11: Total capital ratio
Total capital ratio ■ Total capital ratio(Consolidated) 2021.3 2022.3 2023.3 2024.3 2025.3 2025.9 Total capital ratio（％） 17.19 15.14 15.80 15.70 13.62 14.50 Total capital (billion yen) 472.9 432.5 411.9 462.4 409.6 451.2 Risk weighted assets (billion yen) 2,749.8 2,856.7 2,607.0 2,944.6 3,006.3 3,11
Slide 12: Progress on KPIs of the 8th Mid-Term Plan
Progress on KPIs of the 8th Mid-Term Plan Progress on “Sustainability Achievement Indicators” (KPIs) under the 8th Mid-Term Plan is on track. Plan for the First Half of the the First Half of the Achievement Indicators Achievement Rate March 31,2029 FY2025 Milestones FY2025 Actual Amount of investmen
Slide 13: Financial Forecast for FY2025
Financial Forecast for FY2025 ‣ Although net interest income is expected to increase due to higher yields, expenses are also projected to rise from growth investments such as personnel costs; therefore, the full-year earnings forecast remains unchanged. ‣ Aiming for record-high net income of 20.0 bi
Slide 14: Initiatives to Enhance Corporate Value
Initiatives to Enhance Corporate Value Copyrights © SHIGA BANK, ltd. All Rights Reserved.
Slide 15: PBR Logic Tree
PBR Logic Tree 2025.9 key indicators Plan Actual KPI RORA-Based Asset Allocation Balance of investment and financing through new financing methods to 462 billion yen 473 billion yen Expansion of non-interest income KPI improve earning power (2025.9) and business domains Number of customers’ 9,000 Ca
Slide 16: Business Outlook – Asset Allocation in Response to Environmental Changes
Business Outlook – Asset Allocation in Response to Environmental Changes ‣ Regularly review business outlook scenarios in light of external environment changes. ‣ Implement asset allocation strategies aligned with environmental changes to achieve medium-term financial targets (no revision to plan).
Slide 17: Status of Asset Allocation
Status of Asset Allocation ■Balance Sheet Overview (Non-consolidated, End-of-period) Total Assets: Liabilities: 7.5 trillion 7.1 trillion Strategically curbed low-rate loans for Loans 【Units：billion yen】 Deposits 【Units：billion yen】 investment purposes, 2025.9 vs. FY-end 2025.9 vs. FY-end improving
Slide 18: Current Understanding of PBR
Current Understanding of PBR Asset Allocation in Loans We recognize that our low PBR is attributable to low ROE and RORA , and aim to improve them through the strategies outlined in the Medium-Term Management Plan. RORA Enhancement Strategy under the 8th Medium-Term Plan PBR（Y-Axis）・ROE（X-Axis） 1.0
Slide 19: Financial Indicators in the 8th Medium-Term Plan
Financial Indicators in the 8th Medium-Term Plan ■ Financial Targets ■ Interest Rate Assumptions ⚫ Market Interest Rates 【Units：%】 Actual Forecast FY2025 FY2026 FY2027 FY2028 【Units：billion yen】 2025.3 2029.3 Gross business profit 58.2 87 BOJ Policy Rate 0.75 1.00 1.25 1.25 Net interest income 64.1
Slide 20: Portfolio: Results and Forecasts by Segment (Summary)
Portfolio: Results and Forecasts by Segment(Summary) Stabilizing Earnings RORA Business Portfolio: Five Segment Strategies (Key Strategic Pillars under the 8th Medium-Term Plan) Volatility Improvement Segment Core Business 2025.9 Actual Results (billion yen) Policy and Outlook (Corporate) Corporate
Slide 21: A. Customers of Corporate and Individual
A. Customers of Corporate and Individual ■ Vision ■ Earnings Plan RORA Improvement Corporate Loans Average balance 【Units：billion yen】 2,550 ■ Creating Value through Deeper Customer Growth Engagement in the Region ・Expand business by building strong relationships and 2,500.0 Strategy understanding c
Slide 22: B. Consumer Loans
B. Consumer Loans ■ Vision ■ Earnings Plan RORA Improvement Consumer Loans Average balance ■ Effective Use of Non-Face-to-Face Channels 1,500 1,425.0 【Units：billion yen】 ・Promote operational efficiency by utilizing digital channels, Growth such as the growing share of online housing loan 1,258.0 1,3
Slide 23: B. Consumer Loans (Details)
B. Consumer Loans (Details) ■Other Consumer Loans ■Other Consumer Loans(Balance) Significance of Non-Face-to-Face Channels 300+ 【Units：billion yen】 ‣ Enhancing customer experience by completing application, 300 contract, and execution processes entirely online. ‣ Driving new customer acquisition and
Slide 24: C. Strategies for Finance (Structured Finance etc.)
C. Strategies for Finance （Structured Finance etc.） ■ Vision ■ Earnings Plan RORA Improvement ■ Investment and Lending Strategy Focused on RORA Average balance 【Units：billion yen】 and Risk Diversification Allocate human and management resources to growth 750.0 651.0 areas: ・Economic capital → Accumu
Slide 25: D. Strategies for Securities
D. Strategies for Securities ■ Vision ■ Earnings Plan Stabilizing Earnings Volatility RORA Improvement Average balance ■ Ongoing Optimization of the Investment Portfolio 2,000 【Units：billion yen】 → Shift toward a portfolio with 1% spread (current 1,642.9 1,638.3 level: approx. 0.7%) ※Excluding strat
Slide 26: D. Strategies for Securities (Details)
D. Strategies for Securities (Details) ■JPY Bonds Portfolio Management Aim: Build a ladder-type portfolio to secure stable interest income. Target portfolio structure in a positive Approach interest rate environment Reinvest redemption proceeds. correct imbalances in remaining maturities Build a lad
Slide 27: E. Group Strategy and New Business
E. Group Strategy and New Business Raising Expected RORA Existing business New business Growth Rate Improvement 【Units：billion yen】 ■Existing business Final Year of the 8th MTP Shiga DC Card 2.0 Net Difference of 2.0 Billion ・・・Cashless Shigagin JCB Yen on a Consolidated and Non-Consolidated Basis S
Slide 28: E. Group Strategy and New Business (Details)
E. Group Strategy and New Business (Details) ■Creating Businesses to Address Regional Challenges Raising Expected Growth Rate RORA Improvement Not only providing “indirect” support through loans, but also taking direct action to solve regional issues, aiming to create sustainable long-term growth fo
Slide 29: Capital Policy
Capital Policy Financial Leverage Control Emphasizing the Balance between Shareholder Return, Soundness, and Growth Investment Shareholder Return Policy during the 8th Medium-Term Plan Aim to maintain a total shareholder return ratio of 40%, combining dividends and share buybacks. FY2024 Dividend FY
Slide 30: Capital allocation
Capital allocation As a Financial Institution Supporting the Regional Economy Control capital by aiming Financial It is expected that we: Leverage Control for the consolidated Common Equity Tier 1 ①Continue providing risk capital to the region, ②Even in the event of a credit shock on the scale of th
Slide 31: Capital Efficiency and Per Share Indicators
Capital Efficiency and Per Share Indicators ■Consolidated ROE, EPS, BPS 6.0% or more 6% 4.0% ROE 4% 2% BPS： Maintain an appropriate level 10,459 10,476 9,958 10,097 9,552 9,652 9,293 BPS 399 359 EPS： Ensure steady profit growth 336 310 246 228 186 EPS 【Unit：yen】 2021.3 2022.3 2023.3 2024.3 2025.3 20
Slide 32: Cross-shareholdings
Cross-shareholdings Financial ● Changes in percentage of Consolidated Net Assets Leverage Control (market-value basis, including unlisted and deemed holdings) 60.5% 55.1% 54.3% 49.0% 51.4% Net asset ratio ● Changes in Market Value and Book Value of Listed Stocks 228.8 Increase on a market value 【Uni
Slide 33: Stock Split and Expansion of Shareholder Benefit Program
Stock Split and Expansion of Shareholder Benefit Program ‣ To enhance liquidity and broaden the investor base, we implemented a stock split by reducing the investment unit size. ‣ To further increase the attractiveness of investing in our shares and encourage long-term ownership by a wider range of
Slide 34: Appendix
Appendix Copyrights © SHIGA BANK, ltd. All Rights Reserved.
Slide 35: Balance of Deposits / Sales of assets under custody
Balance of Deposits / Sales of assets under custody ■ Deposit （Average balance） ■ Sales during the custody 【Units：billion yen】 【Units：billion yen】 2021.3 2022.3 2023.3 2024.3 2025.3 2025.9 2021.3 2022.3 2023.3 2024.3 2025.3 2024.9 2025.9 Deposits 5,201.7 5,452.1 5,628.3 5,722.3 5,800.9 5,835.6 Inves
Slide 36: Balance of Loans
Balance of Loans ■loans to small and medium-sized enterprises ("SMEs") , etc. ■ Loans（Average balance ） （Average balance） 【Units：billion yen】 【Units：billion yen】 2021.3 2022.3 2023.3 2024.3 2025.3 2025.9 2021.3 2022.3 2023.3 2024.3 2025.3 2025.9 Corporate loans and bills discounted 2,443.2 2,453.8 2
Slide 37: Deposits and Loans Plan
Deposits and Loans Plan ■ Deposits Plan（Average balance） ■ Loans Plan （Average balance） Segment 【Units：billion yen】 【Units：billion yen】 Growth Rate Growth Rate 2025.9 2029.3(Plan) 2025.9 2029.3(Plan) （％） （％） Corporations 1,355.4 1,425 +5％ Corporate（A.） 2,539.4 2,500 － Individuals 4,236.3 4,325 +2％ C
Slide 38: Risk Factors for Performance: Interest Rate Scenario
Risk Factors for Performance: Interest Rate Scenario ■ Gross business profit forecast 【Units：billion yen】 ■ Interest Rate Scenario 80 71.6 81 87 Main Scenario 1H FY2025 2H FY2025 1H FY2026 2H FY2026 1H FY2027 2H FY2027 FY2028 58.2 78 Policy rate 0.50 0.75 0.75 1.00 1.00 1.25 1.25 60 Swap5Y 0.91 1.00
Slide 39: Impact of Changes in Policy Rate
Impact of Changes in Policy Rate ■Investment/Funding Portfolio ■ Top-Line Sensitivity (Loans + Securities) to Policy Rate Changes ※as of 2024.3 BOJ Policy Rate Top-Line Change Impact of a 1% increase from the Zero Interest Rate Policy +13.4billion yen balance 【Units：trillion】 Top-Line Change Corpora
Slide 40: Impact of Rising Interest Rates
Impact of Rising Interest Rates ■ Total yen assets （2025.9） 【Units：billion yen】 【Units：billion yen】 100% 160.4 Variable 100% (2.9％) Bonds Variable （market-linked） 90% 90% １,042.0 ・Short Term 2,495.1 （24.0％） Variable Loans (45.6％) 80% 2,655.6 （Variable） Variable Variable (48.5％) （Housing etc.) 70% Sh
Slide 41: Overview of Shiga Prefecture
Overview of Shiga Prefecture ■Estimated Population in 2050 (Index) ■Estimated Working-age Population in 2050 【Units：％】 110.0 Rank Regions 2020 2050 100.0 86.5 Shiga Prefecture ranks 8th － National Average 59.5 52.9 1st Tokyo 66.1 60.4 90.0 83.0 2nd Kanagawa 62.7 55.0 80.0 3rd Aichi 61.7 54.7 4th Sai
Slide 42: Mother Market: Potential of Shiga Prefecture
Mother Market: Potential of Shiga Prefecture Rich Natural Environment, Stable Demographics, and One of the Few Growing a Vibrant Regional Economy Markets Loan market growth is expected in Shiga. Moderate Population Decline Located at the intersection Shiga ranks 8th nationwide in lowest of Major Eco
Slide 43: Mother Market: Potential of Shiga Prefecture (Deposit Environment)
Mother Market: Potential of Shiga Prefecture (Deposit Environment) ■Deposit Environment in Shiga Prefecture (Retail Deposits) ■ ”Lake Biwa Blue Deposit” 2025.9 2024.9 Change 2025 Ranks 2024 Ranks Change in ranking ・Following the introduction of “Green Deposit” in 2024, launched the “Lake Tokyo 5.70%
Slide 44: System Investment – BankVision by BIPROGY
System Investment – BankVision by BIPROGY In today’s VUCA era of rapid changes in social and business environments, it is essential to have: Raising Expected ・Advanced systems that can flexibly and quickly reflect management strategies. Growth Rate ・IT talent capable of smoothly implementing these s
Slide 45: Inquiries
Inquiries This document contains forward-looking statements regarding future performance. Such statements do not guarantee future performance and involve risks and uncertainties. Please note that future performance may differ from targets due to changes in the business environment. ＜Inquiries＞ Shiga