Shiga Bank (8366): FY3/26 briefing: Upside in x-share gains, considering changing CET1 ratio target

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Shiga Bank (8366): FY3/26 briefing: Upside in x-share gains, considering changing CET1 ratio target

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Shiga Bank (8366)

FY3/26 briefing: Upside in x-share gains,

considering changing CET1 ratio target

Maintain Rating: UNDERPERFORM | PO: 2,150 JPY | Price: 1,972 JPY

04 June 2026

Shiga Bank held a FY3/26 full-year results briefing on June 4, 10:00. Our earnings

Equityforecasts will be reviewed as necessary based on interviews and other factors. A sense

of overvaluation in terms of P/B-ROE valuation remains, and considering upside Yuji Kobayashi >>

potential in the share price, we maintain our Underperform rating. The main messages Research Analyst

BofAS Japan

from management are as follows. +81 3 6225 8791

yuji.kobayashi@bofa.com

Shinichiro Nakamura >>(1) Impression that there is significant upside for consol.

Research Analyst

BofAS JapanNP/ROE from gains on sales of cross-shareholdings +81 3 6225 8824

Acceleration of the reduction of cross-shareholdings is assumed, and the basic policy shinichiro.nakamura@bofa.com

had been to offset this with bond loss-cutting and core system investment or to allocate

it to growth investments. However, it was stated that there is no rigid stance toward the

above policy, and upside potential for consolidated NP is likely increasing. Stock Data

(2) Considering changing the CET1 ratio target from the Price 1,972 JPY

current 11% range to the 10% range Price Objective 2,150 JPY

The consolidated CET1 ratio at end-FY3/26 (excluding OCI / fully loaded Basel III) was Date Established 21-Apr-2026

10.54%. The target has been in the 11% range, and at end-FY3/26 it fell below 11.0% Investment Opinion B-3-7

mainly due to an increase in risk assets, but it was stated that a change of the target to 52-Week Range 1,132-2,190 JPY