The Bank of Iwate, Ltd. (8345): FY2025 Results Summary — Record Profit as Equity Sale Gains Offset Bond Portfolio Losses

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The Bank of Iwate, Ltd. reported consolidated ordinary income of 77,495 million yen for the fiscal year ended March 31, 2026, up 57.5% year on year, with ordinary profit of 12,851 million yen (up 31.3%) and profit attributable to owners of parent of 8,919 million yen (up 27.8%). Note: japan-equity.com refers to the fiscal year ended March 31, 2026 as FY2025 and the fiscal year ended March 31, 2025 as FY2024, following this site’s naming convention; the source document itself labels these periods “the fiscal year ended March 31, 2026” (FYE 3/2026) and “the fiscal year ended March 31, 2025” (FYE 3/2025) respectively.

On a non-consolidated basis, net business profit (before provision of general allowance for loan losses) swung to a loss of (2,868) million yen from a profit of 10,189 million yen a year earlier, as gains (losses) on bonds fell to a loss of (19,581) million yen from a loss of (1,505) million yen. This was more than offset by gains (losses) related to stocks, etc. of 16,713 million yen (versus 6 million yen a year earlier), which included gains on sale of equity securities of 16,868 million yen (versus 132 million yen). Core net business profit (excluding gains (losses) on bonds), a key measure of core banking profitability, rose to 16,713 million yen from 11,695 million yen.

Consolidated Results (Full-Year Actual)

Consolidated operating results and financial position for the fiscal year ended March 31, 2026, as reported in the Bank’s Consolidated Financial Results (Under Japanese GAAP):

Item	FY2025 (FYE 3/2026)	FY2024 (FYE 3/2025)	Change (YoY)
Ordinary income (Millions of yen)	77,495	49,178	+57.5%
Ordinary profit (Millions of yen)	12,851	9,780	+31.3%
Profit attributable to owners of parent (Millions of yen)	8,919	6,976	+27.8%
Comprehensive income (Millions of yen)	12,738	(13,234)	–
Basic earnings per share (Yen)	129.40	101.71	–
Rate of return on equity (%)	4.7	3.6	–
Total assets (Millions of yen)	3,913,713	3,802,787	–
Net assets (Millions of yen)	194,750	184,658	–
Equity-to-asset ratio (%)	4.9	4.8	–

Note: The Bank conducted a four-for-one stock split effective April 1, 2026. Basic earnings per share and net assets per share for the fiscal year ended March 31, 2025 are stated as if the stock split had been conducted at the beginning of that fiscal year.

Non-Consolidated Core Banking Metrics

As a bank, the company’s supplementary information breaks out profit and loss on a non-consolidated basis using bank-specific line items such as gross business profit, core net business profit, and credit-related expenses. Figures below are non-consolidated, in millions of yen, with (A)-(B) as printed in the source.

Item	FY2025 (FYE 3/2026) (A)	(A)-(B)	FY2024 (FYE 3/2025) (B)
Ordinary income	71,585	27,881	43,704
Gross business profit	21,247	(12,268)	33,515
(Excluding gains (losses) on bonds)	40,828	5,807	35,021
Net interest income	37,448	5,849	31,599
Net fees and commissions	4,350	(295)	4,645
Net other ordinary income	(20,551)	(17,822)	(2,729)
Expenses (excluding non-recurring expenses)	24,115	789	23,326
Net business profit (before provision of general allowance for loan losses)	(2,868)	(13,057)	10,189
Core net business profit (Excluding gains (losses) on bonds)	16,713	5,018	11,695
Net business profit	(2,879)	(13,229)	10,350
Credit-related expenses	1,350	550	800
Ordinary profit	12,713	3,164	9,549
Profit	8,974	2,106	6,868

Capital Adequacy and Asset Quality

Item	As of Mar. 31, 2026 (A)	(A)-(B)	As of Mar. 31, 2025 (B)
Capital ratio, Consolidated (%)	11.17	(0.22pp)	11.39
Capital ratio, Non-consolidated (%)	10.85	(0.24pp)	11.09
Non-performing loans ratio, Non-consolidated (%)	2.46	(0.09pp)	2.55
Coverage ratio, Non-consolidated (%)	80.3	0.4pp	79.9
ROE (Profit basis), Non-consolidated (%)	4.96	1.24pp	3.72
ROA (Core net business profit basis), Non-consolidated (%)	0.43	0.13pp	0.30
Over Head Ratio (OHR), Non-consolidated (%)	59.06	(7.54pp)	66.60

Deposits and Loans (Non-Consolidated, Term-End Balance)

Item	As of Mar. 31, 2026 (A)	(A)-(B)	As of Mar. 31, 2025 (B)
Deposits and Negotiable certificates of deposit (Millions of yen)	3,463,887	41,612	3,422,275
Deposits (Millions of yen)	3,229,497	27,238	3,202,259
Loans and bills discounted (Millions of yen)	2,323,787	117,107	2,206,680
Loans and bills discounted, within Iwate Prefecture (Millions of yen)	1,681,281	78,734	1,602,547
Loans and bills discounted, to individuals (Millions of yen)	563,052	11,165	551,887

FY2026 Forecast

For the fiscal year ending March 31, 2027, the Bank forecasts consolidated ordinary profit of 14,500 million yen (up 12.8% year on year) and profit attributable to owners of parent of 10,000 million yen (up 12.1%), with basic earnings per share of 144.85 yen (stated after the four-for-one stock split effective April 1, 2026). For the six months ending September 30, 2026, the Bank forecasts ordinary profit of 7,200 million yen (up 12.2%) and profit attributable to owners of parent of 5,000 million yen (up 14.7%), with basic earnings per share of 72.42 yen.

Item	FY2026 Forecast (FYE 3/2027)	FY2025 (Actual, FYE 3/2026)
Ordinary profit, Full year (Millions of yen)	14,500	12,851
Profit attributable to owners of parent, Full year (Millions of yen)	10,000	8,919
Basic earnings per share, Full year (Yen)	144.85	129.40
Ordinary profit, Six months ending Sept. 30, 2026 (Millions of yen)	7,200	–
Profit attributable to owners of parent, Six months ending Sept. 30, 2026 (Millions of yen)	5,000	–

Shareholder Returns

Annual dividends per share for the fiscal year ended March 31, 2026 totaled 208.00 yen (second quarter-end 96.00 yen, fiscal year-end 112.00 yen), up from 125.00 yen a year earlier (second quarter-end 60.00 yen, fiscal year-end 65.00 yen). Total cash dividends were 3,627 million yen, with a consolidated payout ratio of 40.1% and a ratio of dividends to consolidated net assets of 1.8%. For the fiscal year ending March 31, 2027, the Bank forecasts annual dividends per share of 58.00 yen (second quarter-end 29.00 yen, fiscal year-end 29.00 yen) with a consolidated payout ratio of 40.0%; these forecast figures are stated after the Bank’s four-for-one stock split effective April 1, 2026, and the annual total would be 232.00 yen on a pre-split basis.

Item	FY2025 (FYE 3/2026)	FY2024 (FYE 3/2025)	FY2026 Forecast (FYE 3/2027)
Second quarter-end dividend (Yen)	96.00	60.00	29.00
Fiscal year-end dividend (Yen)	112.00	65.00	29.00
Total annual dividend (Yen)	208.00	125.00	58.00
Total cash dividends (Total) (Millions of yen)	3,627	2,178	–
Payout ratio (Consolidated) (%)	40.1	30.7	40.0
Ratio of dividends to net assets (Consolidated) (%)	1.8	1.1	–

Medium-Term Plan / Topics

This cannot be confirmed from the materials.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.