FY3/26 investment trust redemption for regionals

Research evidence excerpt

FY3/26 investment trust redemption for regionals

18 May 2026

Mizuho Securities Equity Research Banks

Industry Overview

Listed regional bank net investment trust redemption gains about 4% core NBP

In this report, we calculate the extent to which publicly listed regional banks’Senior Analyst:

adjusted NBP and core NBP included redemption gains/losses on investmentMaoki Matsuno

trusts in FY3/26 and FY3/25 (see Figure 1). In FY3/26, listed regional banks’+81 3 6202 8289

maoki.matsuno@mizuho-sc.com net redemption gains/losses increased by ¥57.5b YoY to ¥106.7b, and core

NBP excluding redemption gains/losses rose by 32% to ¥2.4195t. Redemption

gains/losses accounted for 7.6% (up 4.2ppt) of adjusted NBP and 4.2% (up

1.6ppt) of core NBP.

In 4Q (Jan–Mar) FY3/26, listed regional banks’ net redemption gains/losses

on investment trusts decreased by ¥11.4b versus 3Q (Oct–Dec 2025) FY3/26,

and core NBP excluding redemption gains/losses rose by 10%. Meanwhile, as

a percentage of core NBP, the highest redemption gains/losses at a regional

bank was roughly 25%. This number can vary greatly between banks. We

believe banks where redemption gains/losses make up a large portion of core

NBP have low margin sustainability.

Interest and dividends on marketable securities include interest and dividends

from marketable trading account securities and marketable securities as

well as income distributions from investment trusts (includes gains from

early redemptions and regular redemptions). This is why investment trust

redemption gains/losses are included in banks’ core NBP. That said, core NBP

does not include gains/losses from the sale of government bonds, foreign

bonds, and REITs and sales gains/losses from investment trust purchase

requests, all of which are included in gains/losses on bonds.