Japan regional banks: 27/3 Q1 results at two banks (29 July)

研报英文原文证据摘录

Japan regional banks: 27/3 Q1 results at two banks (29 July)

Japan regional banks: 27/3 Q1 Global Markets Research 29 July 2026

results at two banks (29 July)

EQUITY: JAPAN BANKS

Research Analysts

Hokuhoku Financial Group, Shiga Bank Japan banks

Ken Takamiya - NSC

ken.takamiya@nomura.comQuick Note +81 3 6703 1140

Ryotaro Terazawa - NSC

Hokuhoku Financial Group [8377] (Buy): Results announced during market hours ryotaro.terazawa@nomura.com

on 29 July +81 3 6703 1037

First impression slightly positive: Steady performance overall

Hokuhoku Financial Group released 27/3 Q1 results at 14:30 JST. Our first impression is

slightly positive. The share price rose by around 0.5% following the announcement.

We identify the following three key takeaways.

(1) Overview: Profits attributable to owners of the parent were equivalent to 38% of full-

year guidance. However, this partly reflected lower-than-expected credit costs and the

booking of negative goodwill gains, and management retained its full-year guidance.

(2) Core earnings: Core net business profits were equivalent to 28% of full-year guidance

and up 44% y-y. Deposits were up a steady 3.5% on a term-end basis and up 3.7% on a

term-average basis. Retail deposits were also up 1.6%.

(3) Valuation gains/losses on securities: Consolidated valuation gains on securities

(after deferred hedges) improved from ¥117.1bn to ¥137.6bn thanks in part to favorable

equity market conditions. Of particular note was the improvement versus end-March in

valuation gains/losses on yen bonds (adjusted for hedging) amid rising yen interest rates.

Shiga Bank [8366] (Neutral): Results announced during market hours on 29 July

First impression in line: Management retains initial guidance despite sharp rise in

unrealized gains on securities