The Toho Bank, Ltd. (8346): FY2025 Results Summary — Net Income Rises 65.9% on Higher Loan and Securities Income

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: The Toho Bank does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s financial results summary (決算短信), with figures transcribed as reported. The source document labels the period as the fiscal year ended March 31, 2026 (FY3/2026); on this site the most recently completed fiscal year is classified as FY2025.

According to the consolidated financial results announced by The Toho Bank, Ltd. for the fiscal year ended March 31, 2026 (FY3/2026), ordinary income was 92,465 million yen (up 31.3% year on year), ordinary profit was 17,090 million yen (up 52.6%), and profit attributable to owners of parent was 12,353 million yen (up 65.9%). The financial results summary explains that interest on loans and interest and dividends on securities increased due to steady growth in the balance of loans and yen-denominated securities and to improved yields following the Bank of Japan’s policy rate hikes. The annual dividend per share was 17 yen 00 sen (versus 9 yen 00 sen in the previous fiscal year), and the Bank plans an annual dividend of 21 yen 00 sen for the fiscal year ending March 31, 2027.

Consolidated Results (FY3/2026 Actual)

Ordinary income was 92,465 million yen, up 31.3% from 70,443 million yen in the previous fiscal year. The results summary states that, in addition to steady growth in corporate-related fee income, fee and commission income increased because the Bank fully transitioned to a new structure based on its comprehensive business alliance with Nomura Securities from October 2025 and built up its balance of assets under custody. Ordinary expenses increased due to higher interest paid on deposits and an increase in operating expenses.

As a result, ordinary profit was 17,090 million yen (up 52.6% year on year), and profit attributable to owners of parent was 12,353 million yen (up 65.9%). Regarding core net business profit, the results summary notes that expenses increased due to human capital investments such as raising starting salaries and other wage increases, as well as growth investments in digital initiatives and the full-scale operation of the Nomura alliance, while net interest income and net fees and commissions increased. Earnings per share were 49 yen 44 sen (versus 29 yen 78 sen in the previous fiscal year), and return on equity was 6.0% (versus 3.7%). All of the figures in the tables below are on a consolidated basis.

Item	FY3/2026	FY3/2025	Change
Ordinary income	92,465 million yen	70,443 million yen	Up 31.3%
Ordinary profit	17,090 million yen	11,197 million yen	Up 52.6%
Profit attributable to owners of parent	12,353 million yen	7,445 million yen	Up 65.9%

Financial Position and Major Accounts

Consolidated total assets at the end of FY3/2026 were 6,742,383 million yen, up from 6,653,240 million yen at the end of the previous fiscal year. Net assets were 217,747 million yen, up from 197,234 million yen at the previous fiscal year-end. The consolidated capital adequacy ratio was 3.2% (2.9% at the previous fiscal year-end); however, according to a note in the results summary, this ‘capital adequacy ratio’ is calculated by dividing total net assets at fiscal year-end by total assets at fiscal year-end, and is not the capital adequacy ratio defined under the capital adequacy ratio notification. The results summary separately states that the Bank’s consolidated capital adequacy ratio under the domestic standard was 11.73% at fiscal year-end, up 0.98 percentage points from the previous fiscal year-end due to a decrease in risk assets.

Item	FY3/2026	FY3/2025
Total assets (consolidated)	6,742,383 million yen	6,653,240 million yen
Net assets (consolidated)	217,747 million yen	197,234 million yen
Capital adequacy ratio (consolidated, tanshin cover definition)	3.2%	2.9%
Net assets per share (consolidated)	871 yen 38 sen	789 yen 86 sen

Among the Bank’s major accounts (consolidated basis), deposits decreased by 19.7 billion yen from the previous fiscal year-end to 5.7427 trillion yen due to declines in individual deposits, corporate deposits, public deposits and other deposits, while total deposits including negotiable certificates of deposit increased by 6.3 billion yen from the previous fiscal year-end to 6.1590 trillion yen on increases in corporate deposits and public deposits and other deposits. Loans increased by 187.8 billion yen from the previous fiscal year-end to 4.2272 trillion yen on growth in business loans, individual loans and public-sector loans, and the results summary states that the fiscal year-end loan balance reached a record high. Securities, centered on yen-denominated bonds, increased by 188.5 billion yen from the previous fiscal year-end to 1.3980 trillion yen.

Consolidated cash flow from operating activities was an outflow of 90,295 million yen, cash flow from investing activities was an outflow of 194,932 million yen, and cash flow from financing activities was an outflow of 2,952 million yen, resulting in a balance of cash and cash equivalents at fiscal year-end of 946,209 million yen.

Dividends

The annual dividend per share for FY3/2026 was 17 yen 00 sen (interim 7 yen 00 sen, year-end 10 yen 00 sen), total dividends were 4,248 million yen, and the consolidated payout ratio was 34.3%. Regarding the year-end dividend, the results summary explains that the Bank set it at 10 yen per share after comprehensively taking into account its shareholder return policy and the fact that the FY3/2026 results exceeded the previously announced earnings forecast. For FY3/2027, under a policy targeting a payout ratio of 40% of profit attributable to owners of parent, the Bank plans an annual dividend of 21 yen 00 sen per share (including an interim dividend of 10 yen 50 sen).

Item	FY3/2026 (Actual)	FY3/2027 (Forecast)
Annual dividend per share	17 yen 00 sen	21 yen 00 sen
Payout ratio (consolidated)	34.3%	40.3%

FY3/2027 Consolidated Earnings Forecast

The consolidated earnings forecast for FY3/2027 is ordinary income of 104,200 million yen (up 12.7% year on year), ordinary profit of 19,600 million yen (up 14.7%), and profit attributable to owners of parent of 13,000 million yen (up 5.2%). Forecast earnings per share are 52 yen 03 sen.

Item	FY3/2027 (Forecast)	Change
Ordinary income	104,200 million yen	Up 12.7%
Ordinary profit	19,600 million yen	Up 14.7%
Profit attributable to owners of parent	13,000 million yen	Up 5.2%

This article is based on the financial results summary (決算短信) for the fiscal year ended March 31, 2026 published by The Toho Bank, Ltd. The financial results summary is not subject to audit by an auditing firm.

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.