Japan Financial Sector: BofA financials weekly, 5 June 2026

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Japan Financial Sector: BofA financials weekly, 5 June 2026

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Japan Financial Sector

BofA financials weekly, 5 June 2026

Industry Overview

05 June 2026 Corrected

Banks (Shinichiro Nakamura) Equity

[Impression from regional bank briefings] Overall, the impression is that there is upside Japan

to FY3/27 guidance. FY3/27 regional bank NP guidance gives the impression that (1) Banks, Brokerage, Insurance & Other

loan interest is strong vs BofAe. (2) The balance of gains/losses on securities sales has Nonbank

improved. (3) Credit costs appear conservative. Regarding the strengthening of

Shinichiro Nakamura >>

shareholder return policies, Kyoto announced additional ¥12.0bn buyback at FY3/26 full- Research Analyst

year results announcement. Mebuki had targeted 40% dividend payout ratio in FY3/28, BofAS Japan

+81 3 6225 8824

but is expected to achieve this one year ahead of schedule, with FY3/27 guidance at shinichiro.nakamura@bofa.com

40%. Shiga had previously had total payout ratio 40% (with actual dividend payout ratio Natsumu Tsujino, CFA >>

30%), but plans to raise the dividend payout ratio all at once to 40% in FY3/27 (we Research Analyst

BofAS Japan

forecast total payout ratio of 50%). On the other hand, Fukuoka gives the impression +81 3 6225-8720

that the timing for the start of continuous buybacks has been pushed back from the end natsumu.tsujino@bofa.com

of FY3/27 to the end of FY3/28, and although 77 raised its dividend payout ratio target Yuji Kobayashi >> Research Analyst

from 35% to 40%, there was no surprise, and we believe the room for buybacks for the BofAS Japan

time being has declined considerably, as no buyback was announced at the revision of +81yuji.kobayashi@bofa.com3 6225 8791

the current MTP.