Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Results for the First Half of Fiscal Year Ending
March 31, 2026
IR Presentation
Materials were prepared for the Bank's presentation of its results for first half of the fiscal year ending March 31, 2026 held on December 2, 2025.
December 2, 2025
Point
01
Posted the highest profit ever recorded for a first half and revised
upward the full-year projected performance for FY2025
✔ Achieved a record-high profit for a first half as a result of the increase in income from customer services and total gains (losses) from securities
✔ Revised upward the full-year projected performance for FY2025 based on the current earnings environment and other factors with the expectation of achieving a record-high profit
Point
02
Initiated a review of "Vision 2030," scheduled for release next spring
✔ New financial targets, Policy of Return of Profits to Shareholders, etc., will be released in conjunction with the review of Vision 2030
✔ Strategies and KPIs are currently under review, while we take into consideration the external environment and other factors in anticipation of the release next spring
Point
03
Increased interim dividends and revised upward the year-end
dividends forecast
✔ Increased interim dividends (up JPY 8) and revised upward the year-end dividends forecast (up JPY 8) in view of performance and other factors
✔ Expected to achieve the dividend ratio target of 35% or more as stated in the Policy of Return of Profits to Shareholders
1. Financial Summary | ・・・ | 3 |
2. Projected Performance | ・・・ | 13 |
3. The 77 Bank Group's Value Enhancement | ・・・ | 18 |
4. Key Business Strategies | ・・・ | 29 |
5. Status of Vision 2030 Initiatives | ・・・ | 38 |
Financial Summary
Non-consolidated (Unit: JPY bn, %) | FY2024 1H | FY2025 1H | YoY change Amount % | ||||||
Gross operating profit | 45.9 | 51.3 | 5.4 | 11.8 | |||||
Net interest income | 54.4 | 55.5 | 1.1 | 1.9 | |||||
Net fees and commissions income | 7.3 | 8.3 | 1.0 | 14.3 | |||||
Net other operating income | (15.8) | (12.5) | 3.3 | ||||||
Expenses | 23.5 | 24.8 | 1.3 | 5.6 | |||||
Substantial net operating income | 22.4 | 26.5 | 4.1 | 18.2 | |||||
[ Core net operating income | ] | [ 31.8 ] | [ 35.2 | ] | [ 3.4 | ] | [ 10.5 | ] | |
[ Core net operating income (excl. gains (losses) on cancellation of investment trusts) | ] | [ 23.6 ] | [ 29.2 | ] | [ 5.6 | ] | [ 23.8 | ] | |
Provision of general reserve for loan losses | - | (0.1) | (0.1) | ||||||
Net operating income | 22.4 | 26.6 | 4.2 | 18.8 | |||||
Special income and losses | 6.0 | 7.8 | 1.8 | ||||||
Ordinary profits | 28.4 | 34.3 | 5.9 | 20.7 | |||||
Extraordinary gains/losses | (0.0) | (0.1) | (0.1) | ||||||
Profit | 19.9 | 24.0 | 4.1 | 20.7 | |||||
(0.3)
2.7
3.0
Total gains (losses) from securities
After excluding procurement costs
Income from customer services
After excluding foreign currency-denominated procurement costs
Ordinary profits
Profit attributable to ow ners of the parent
28.7
35.2
6.5
22.6
19.8
24.3
4.5
22.8
Consolidated
Credit-related expenses
23.3 | 27.3 | 4.0 4.0 3.6 4.2 | |
17.0 | 21.0 | ||
11.2 | 14.8 | ||
9.1 | 13.3 |
Summary of Profits and Losses
Net interest income increased as a result of capturing demand for loans and bills discounted and the increase in yields on these assets, despite the increase in interest rate on deposits Net interest income
(Unit: JPY bn, %)
Average balances and yields of loans and bills
discounted (Unit: JPY bn)
FY2024 | FY2025 | YoY change | ||||
1H | 1H | Amount % | ||||
Net interest income | 54.4 | 55.5 | 1.1 | 1.9 | ||
Interest income | 56.5 | 64.7 | 8.2 | 14.4 | ||
(Interest on loans and bills discounted) | 28.4 | 37.2 | 8.8 | 31.0 | ||
(Interest and dividends on investment securities) | 26.9 | 25.3 | (1.6) | (6.0) | ||
Interest expenses | 2.1 | 9.3 | 7.2 | 342.7 | ||
(Interest on deposits) | 1.4 | 7.9 | 6.5 | 476.5 | ||
Yields on loans and bills discounted
0.86% 0.91% 1.01%
Loans and bills
discounted 5,422.5 5,661.6 5,991.8
(average
balances)
FY2022 FY2023 FY2024
0.96%
5,882.1
FY2024 1H
1.18%
Average balances and yields of investment securities
(excluding products and corporate investment funds) (Unit: JPY bn)
6,275.6
FY2025 1H
Average balances and yields of deposits
(including negotiable certificates of deposits)
(Unit: JPY bn)
1.06%
1.45%
1.73
Yields on investment securities
% 1.91% 1.81%
(Reference) Change factors in net interest income (Unit: JPY bn)
Factors in loans
Investment securities (average balances)
3,018.4 2,940.6 2,756.3
2,801.5 2,777.0
+8.8
Yen-denominated: +9.1
Foreign currency-denominated: (0.3)
8,933.8 8,924.8
Yield
FY2022 FY2023 FY2024
FY2024 1H
FY2025 1H
Net interest
Average
+6.9
Average
Yield
Net interest
Average balances of deposits
8,842.8
8,908.5
8,924.4
Interest rate on deposits
FY2025
1H
FY2024
1H
0.00%
0.00%
0.06%
0.03%
0.17%
income 54.4
balance
+1.9
balance
(0.3) (1.3)
Others income
+0.4 55.5
Factors in securities
(1.6)
Yen-denominated: +0.2
Foreign currency-denominated: (1.8)
Factors in
deposits (6.5)
FY2024 1H
FY2025 1H
FY2022 FY2023 FY2024
Average balances of deposits decreased due to a decrease in public deposits, etc., despite increases in both retail and corporate deposits Overall interest rate on deposits increased due to rising deposit interest rates(including negotiable certificates of deposits)
(Unit: JPY bn)
Deposits (average balances)
Average balances and yields of retail deposits
Average balances and yields of corporate deposits (yen-
denominated, including negotiable certificates of deposits) (Unit: JPY bn)
5,863.8
5,970.6
6,020.6 6,011.7 6,014.5
0.00%
0.00%
0.06%
0.02%
0.18%
FY2022
FY2023
FY2024
FY2024
1H
FY2025
1H
(yen-denominated) (Unit: JPY bn)
Total
8,842.8
8,908.5
8,924.4
8,933.8
8,924.8
Average balances of
2,221.6 2,223.0
6,024.2
5,974.8
[YoY change (%)] [+2.5%]
[+0.7%]
[+0.1%]
[(0.2)%]
[(0.1)%]
retail
deposits
Interest rate on deposits
Retail deposits
6,015.4 6,017.8
+0.0%
Average balances of corporate deposits
Interest rate on deposits
2,172.3 2,201.5 2,210.2
0.00% 0.00% 0.05%
2,214.3 2,239.0
0.02% 0.15%
779.6
2,193.9
5,869.3
FY2022 FY2023 FY2024
FY2024 1H
FY2025 1H
denominated, including negotiable certificates of deposits)
(Unit: JPY bn)
2,251.5
2,226.7
Average balances and yields of public deposits (yen-
Corporate deposits
Public deposits, etc.
691.7 655.5
+1.1%
(5.2)%
Average balances of public deposits
756.4
688.1
657.8
0.00%
0.00%
0.05%
FY2022
FY2023
FY2024
FY2025
1H
FY2024
1H
0.16%
0.02%
636.1
671.5
Interest rate on deposits
677.2
712.1
FY2022 FY2023 FY2024
FY2024 FY2025
1H 1H
YoY
change (%)
Captured working capital and capital expenditure needs and maintained a high growth rate for corporate loans Yields on yen-denominated loans and bills discounted increased by 0.24 percentage points year on year, leading to an improvement in overall yields on such assetsLoans and bills discounted (average balances) (Unit: JPY bn)
(yen-denominated)
(Unit: JPY bn)
Corporate loans (average balances)
Total
[YoY change (%)]
5,422.5
[+5.5%]
5,661.6
[+4.4%]
5,991.8
4,015.2
82.7
[+5.8ï¼…]
5,882.1
[+5.2ï¼…]
6,275.6
[+6.6ï¼…]
Total
[YoY change (%)] 3,434.7
[+7.7ï¼…]
Miyagi Prefecture
3,690.1
[＋7.4％]
4,015.2
[+8.8ï¼…]
2,191.5
3,906.8
[＋7.9％]
4,311.7
[＋10.3％]
2,324.5
+8.7%
Yen-
3,434.7
80.3
3,690.1
3,906.8
4,311.7
+10.3%
Tohoku region, etc. (excluding Miyagi Prefecture)
Tokyo, Nagoya, Osaka
Structured finance
1,898.2
340.4
990.5
205.6
2,036.5
382.6
1,030.9
240.1
418.2
1,154.8
250.7
2,136.6
404.5
449.9
1,116.8 1,270.8
248.9 266.5
+11.2%
+13.7%
+7.0%
denominated corporate
FY2022 FY2023 FY2024
FY2024 1H
FY2025 1H
YoY change (%)
Yields on loans and bills discounted
Foreign currency-denominated corporate
77.7
82.0 83.3
+1.5%
Foreign currency-denominated
3.84%
6.62% 6.17%
1.18%
5.60%
6.41%
1.01%
Retail loans | 1,277.0 | 1,317.3 | |
[of which, | [1,216.9] | [1,251.5] | |
housing loans] | |||
Loans for local governments | 630.5 | 576.5 |
1,355.3 [1,283.6] | 1,346.1 [1,275.7] | 1,381.0 [1,305.8] | ＋2.5% [+2.3％] | |||
538.6 | 547.2 | 499.6 | (8.6)% |
Overall
0.86%
Yen-
0.91%
0.96%
1.12%
0.88%
0.93%
FY2022 FY2023 FY2024
FY2024
FY2025
YoY
denominated 0.81% 0.83%
FY2025 1H
FY2024 1H
FY2022 FY2023 FY2024
1H 1H
change (%)
7
Balance of investment securities
(on an amortized cost basis)
(Unit: JPY bn)
Proceeded with sales primarily focused on low-yield bonds while executing sales of equity, etc., that capitalized on the rise in stock prices, resulting in improvements in both the total gains (losses) from securities and total yield on securitiesFY2024 | FY2025 | YoY change | ||
1H | 1H | Amount | ||
Interest and dividends on investment securities [A] | 26.9 | 25.3 | (1.6) | |
Interest on yen-denominated bonds | 2.9 | 4.4 | 1.5 | |
Interest on foreign currency-denominated bonds | 6.6 | 4.8 | (1.8) | |
Stock dividends | 4.4 | 4.9 | 0.5 | |
Distributions from investment trusts | 4.8 | 5.2 | 0.4 | |
Gains on cancellation of investment trusts | 8.2 | 6.0 | (2.2) | |
Gain (losses) on debt securities [B] | (9.4) | (8.7) | 0.7 | |
Gain on sales | 2.7 | 0.3 | (2.4) | |
Gain on redemption | 0.0 | 0.0 | 0.0 | |
Losses on sales | 10.1 | 6.2 | (3.9) | |
Losses on redemption | 2.0 | 2.8 | 0.8 | |
(Losses on cancellation of investment trusts) | 1.9 | 2.6 | 0.7 | |
Write-offs | 0.0 | - | (0.0) | |
Gain (losses) on equity securities [C] | 5.4 | 7.0 | 1.6 | |
Gain on sales | 5.5 | 7.0 | 1.5 | |
Losses on sales | 0.1 | 0.0 | (0.1) | |
Write-offs | 0.0 | - | (0.0) | |
Gains (losses) on investments in money held in trust [D] | 0.4 | 3.7 | 3.3 | |
Total gains (losses) from securities (Unit: JPY bn, %)
Total
521.3
[+5.8%]
576.3
[(4.8)%]
693.1
[+0.1%]
402.6
492.3
800.7
605.6
692.3
726.8
286.0
313.2
967.1
923.3
943.8
841.8
National gov. bonds
Local gov. bonds
Corporate bonds
130.4
610.5
Investment trusts, etc.
3,013.4 2,975.0
2,918.0
2,831.9 2,758.9
712.5
[(5.2)%]
Total gains (losses) from securities [A+B+C+D]
23.3
After excluding procurement costs
17.0
(Reference) Total yield from securities
(After excluding procurement costs)
1.15
21.0
27.3
1.44
18.9%
20.9%
25.1%
25.8%
Foreign bonds
Equity securities
75.6
End-Mar. 2022
183.5
76.2
End-Mar. 2023
75.7
End-Mar. 2024
77.5
212.0
752.2
End-Mar. 2025
175.9
[(17.0)%]
79.7
222.7
689.6
[+2.8%]
End-Sept. 2025
[Change from
6.4%
2.9%
Composition ratio
637.0
4.0
4.0
0.29
March 31, 2025]
Executed sales primarily focused on low-yield bonds and purchases of bonds with an eye toward evening out the redemption period, in order to raise the yield of the yen-denominated bond portfolioGains (losses) from evaluation of securities
(Unit: JPY bn)
Yen-denominated bonds balance by remaining period
(Unit: JPY bn)
70.9
(2.0)
166.7
173.4
Investment trusts, etc.
61.3
33.7
Foreign bonds
(1.3)
(1.0)
Equity securities
143.3
124.3
Investment securities total
168.4
93.3
Money held in trusts
7.8
5.8
Total
176.2
99.1
180.1
6.7
Deb | End-Mar. 2024 End-Mar. 2025 t securities (34.9) (63.7) | End-Sept. 2025 (62.2) | ||||
National gov. bonds | (16.8) | (27.3) | (27.3) | |||
Local gov. bonds | (9.6) | (18.8) | (17.5) | |||
Corporate bonds | (8.5) | (17.6) | (17.4) | |||
Others 60.0 32.7 | 68.9 | |||||
No more than 1 year
Over 1 year but no more than 5 years
Over 5 years but no more than 10 years
121.5
252.9
396.1
446.6
End-Mar.2025 End-Sept.2025
994.0
1,086.2
Over 10 years
150.0
137.4
(Reference) Sales and redemptions of yen-denominated bonds
Sales [Average remaining period] | Redemptions | |
FY2024 | JPY 321.3 bn [7.7 years] | JPY 215.3 bn |
FY2025 1H | JPY 74.7 bn [7.6 years] | JPY 137.0 bn |
Modified duration of yen-denominated bonds and foreign currency-denominated foreign bonds
(Reference) Changes in Nikkei Average, etc.
44,932 |
1.64 |
4.15 |
(Unit: JPY, %)
Yen-denominated bonds [Yield]
5.42
[0.35%]
[0.49%]
[0.26%] 4.43
4.30
Nikkei Stock Average 10-year JGB yield
10-year US Treasury yield
40,369 35,617
0.72 1.48
4.20 4.20
Foreign currency-denominated foreign bonds
0.68 0.63
0.48