The Hyakujushi Bank, Ltd. (8386): FY2025 Results Summary — How the ‘Overview of Operating Results’ Disclosure Changed Year on Year

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

Note: The Hyakujushi 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 compares the ‘Overview of Operating Results, etc.’ disclosure in the company’s financial results summaries (決算短信) between fiscal periods, with figures transcribed as reported. The source article labels the fiscal year ended March 31, 2026 as the most recently completed full year; on this site that period is classified as FY2025.

For the full fiscal year, new disclosure items — including a note on the change in the credit risk-weighted asset calculation method and an explanation of the stock split — were added, making the commentary somewhat more detailed, while the qualitative explanation in the quarterly report was unchanged from the previous period.

Survey Overview

This article is part of a survey covering the top 500 companies by market capitalization on the Tokyo Stock Exchange Prime Market, examining how the description in the section equivalent to ‘1. Overview of Operating Results, etc.’ in financial results summaries has changed. This entry covers The Hyakujushi Bank, Ltd.

Full year: the financial results summary for the fiscal year ended March 31, 2025 compared with the financial results summary for the fiscal year ended March 31, 2026 (disclosure dates: May 12, 2025 to May 12, 2026).

Quarterly: the first-quarter financial results summary for the fiscal year ending March 31, 2026 compared with the first-quarter financial results summary for the fiscal year ending March 31, 2027 (disclosure dates: August 1, 2025 to August 5, 2026).

Here, the qualitative text refers to the description in the financial results summary from the heading equivalent to ‘1. Overview of Operating Results, etc.’ up to immediately before the next major heading. Character counts exclude the title text (in 『 』 brackets) and are measured excluding blank spaces.

Full-Year Financial Results Summary Comparison

Character count: 2,101 characters to 2,400 characters (up 14.2% year on year, an increase).

Change in heading structure: No change.

Granularity assessment: More detailed.

Segment information note: Present (496 characters) to Present (496 characters).

Type of change: Accounting-standard-change type; event type.

Added elements: (1) a note on the change in the credit risk-weighted asset calculation method (from the Standardized Approach to the Foundation Internal Ratings-Based Approach); (2) an explanation of the stock split (one share of common stock split into four shares, effective April 1, 2026); (3) an explanation of the recovery in tourism-related consumption driven by the opening of the Kagawa Prefectural Arena and the Setouchi Triennale.

Summary: Compared with the previous period, new items were added, including a note on the change in the credit risk-weighted asset calculation method (from the Standardized Approach to the Foundation Internal Ratings-Based Approach) and the implementation of a stock split. The explanation of local economic trends was also expanded to cite specific event names, making the overall explanation of factors somewhat more detailed.

Quarterly Financial Results Summary Comparison

Character count: 582 characters to 587 characters (up 0.9% year on year, an increase).

Change in heading structure: No change.

Granularity assessment: Equivalent.

Segment information note: Present (212 characters) to Present (208 characters).

Type of change: No change.

Summary: The explanation of the factors behind the increase or decrease in ordinary income and profit follows the same structure and level of detail as the previous period, with only the figures updated. No new items were added or removed.

Full Text of the Qualitative Commentary — Full Year, FY Ended March 31, 2025

Source: The Hyakujushi Bank, Ltd., financial results summary for the fiscal year ended March 31, 2025 [Japanese GAAP], disclosed May 12, 2025 (https://www2.jpx.co.jp/disc/83860/140120250509539327.pdf).

1. Overview of Operating Results, etc. (1) Overview of the Period’s Operating Results [Financial and Economic Environment] During the consolidated fiscal year, Japan’s economy continued on a gradual recovery track, although some areas showed weaker movement. In the household sector, rising prices led to a stronger tendency toward saving, but personal consumption remained solid, supported by wage increases at many companies amid tight labor supply and demand. In the corporate sector, capital investment appetite was high against a backdrop of strong earnings and labor shortages, and capital investment increased moderately. In addition, automobile production, which had driven the economic recovery in the previous fiscal year, declined due to factors such as plant shutdowns, but an increase in the number of inbound visitors to Japan boosted inbound consumption and kept it strong, while the recovery of the silicon cycle led to increased production related to semiconductors, underpinning the economy. In financial markets, the Bank of Japan raised its policy interest rate twice during the fiscal year. Going forward, it is expected that the Bank of Japan will continue to determine its policy stance toward monetary policy normalization based on wage and price conditions and economic trends. In the local Kagawa Prefecture economy, personal consumption was affected by rising prices but remained on a gradual recovery track, supported by a recovery in tourism-related consumption and firm sales at large retailers. Corporate production remained in a flat range, while capital investment and public investment increased, and overall the local economy continued on a gradual recovery.

[Profit and Loss] Consolidated ordinary income increased by 7,861 million yen year on year to 90,007 million yen, due to an increase in interest income on fund management resulting from higher interest on loans, and an increase in other ordinary income resulting from higher gains on sales of equities and other securities. Meanwhile, consolidated ordinary expenses increased by 2,508 million yen year on year to 70,096 million yen, due to an increase in other operating expenses resulting from higher losses on sales of government bonds and other bonds, and an increase in credit costs. As a result, consolidated ordinary profit increased by 5,353 million yen year on year to 19,910 million yen. Profit attributable to owners of parent increased by 4,058 million yen year on year to 13,700 million yen.

(2) Overview of the Period’s Financial Position [Total Deposits and Assets in Custody] The balance of total deposits at the end of the consolidated fiscal year decreased by 54.5 billion yen from the end of the previous consolidated fiscal year to 4.695 trillion yen, as public-sector deposits increased but corporate and individual deposits decreased. The balance of assets in custody at the end of the consolidated fiscal year increased by 32.6 billion yen from the end of the previous consolidated fiscal year to 377.0 billion yen, as financial instruments intermediary balances decreased but investment trusts and single-premium insurance increased.

[Loans] The balance of loans at the end of the consolidated fiscal year increased by 78.2 billion yen from the end of the previous consolidated fiscal year to 3.5066 trillion yen, as loans to the public sector decreased but corporate and individual loans increased.

[Securities] The balance of securities at the end of the consolidated fiscal year increased by 72.1 billion yen from the end of the previous consolidated fiscal year to 1.1899 trillion yen, mainly due to an increase in bonds. The net unrealized valuation gain on ‘other securities’ at the end of the consolidated fiscal year decreased by 19.4 billion yen from the end of the previous consolidated fiscal year to 51.8 billion yen.

[Consolidated Capital Adequacy Ratio (Basel III basis)] The consolidated capital adequacy ratio at the end of the consolidated fiscal year rose by 0.21 percentage point from the end of the previous consolidated fiscal year to 9.33%.

(3) Overview of the Period’s Cash Flows Cash flow from operating activities was an outflow of 130.7 billion yen, due to an increase in loans and other factors (a decrease of 38,249 million yen year on year). Cash flow from investing activities was an outflow of 94,110 million yen, due to the acquisition of securities and other factors (a decrease of 77,533 million yen year on year). Cash flow from financing activities was an outflow of 3,764 million yen, due to the acquisition of treasury stock and the payment of dividends, among other factors (a decrease of 873 million yen year on year). As a result, cash and cash equivalents stood at 817.9 billion yen (a decrease of 228,578 million yen year on year).

(4) Future Outlook For the fiscal year ending March 31, 2026, the Bank forecasts consolidated ordinary income of 98.5 billion yen, up 8.4 billion yen from the previous period; ordinary profit of 24.1 billion yen, up 4.1 billion yen; and profit attributable to owners of parent of 15.5 billion yen, up 1.8 billion yen. In addition, the Bank’s non-consolidated earnings forecast is ordinary income of 88.0 billion yen, ordinary profit of 22.4 billion yen, and net income of 14.5 billion yen. For details, please refer to the supplementary explanatory material ‘Overview of Results for the Fiscal Year Ended March 31, 2025 and Full-Year Earnings Forecast and Shareholder Returns for the Fiscal Year Ending March 31, 2026.’ Statements regarding future matters such as earnings forecasts are based on information currently available to the Bank and on certain assumptions judged to be reasonable, and actual results may differ significantly due to various factors.

(5) Policy on Profit Distribution and Dividends for the Current and Next Fiscal Year Regarding profit distribution, the Bank’s policy is to pay dividends after giving comprehensive consideration to the adequacy of retained earnings, the state of profits, and the business environment, while paying due regard to providing shareholders with stable returns. Under this policy, the year-end dividend for the current period is planned at 85 yen per share (annual dividend of 145 yen), an increase of 25 yen from the previous forecast. In addition, the annual dividend for the next fiscal year is forecast at 176 yen per share (including an interim dividend of 88 yen).

Full Text of the Qualitative Commentary — Full Year, FY Ended March 31, 2026

Source: The Hyakujushi Bank, Ltd., financial results summary for the fiscal year ended March 31, 2026 [Japanese GAAP], disclosed May 12, 2026.

1. Overview of Operating Results, etc. (1) Overview of the Period’s Operating Results [Financial and Economic Environment] During the consolidated fiscal year, amid concerns over the impact of U.S. tariff policy, Japan’s economy continued on a gradual recovery track. In the household sector, wage increases in the 5% range — a high level — were achieved for a third consecutive year, and, together with a slowdown in the rate of price increases, real wages showed signs of bottoming out, so personal consumption remained solid. In the corporate sector, against a backdrop of worsening labor shortages, appetite for labor-saving and digitalization investment was high, and capital investment increased moderately. In addition, inbound consumption remained strong and underpinned the economy. On the other hand, the impact of heightened tensions in the Middle East on energy prices and supply chains requires continued attention going forward. In financial markets, the Bank of Japan continued to raise its policy interest rate in stages, and the normalization of monetary policy progressed further. In response to these developments, long-term interest rates continued on a gradual upward trend. In the local Kagawa Prefecture economy, as the impact of rising prices eased, personal consumption remained solid, supported by firm sales at department stores and supermarkets, while tourism-related consumption also maintained a recovery trend due to the opening of the Kagawa Prefectural Arena and the holding of the Setouchi Triennale, and the economy continued on a gradual recovery. In terms of corporate production activity, some caution was seen in transport machinery due to the impact of tariffs, but food products were flat and chemicals were on a recovering trend, so overall the recovery trend continued.

[Profit and Loss] Consolidated ordinary income increased by 18,549 million yen year on year to 108,556 million yen, due to an increase in interest income on fund management resulting from higher interest on loans and interest and dividends on securities, and an increase in other ordinary income resulting from higher gains on sales of equities and other securities. Meanwhile, consolidated ordinary expenses increased by 9,324 million yen year on year to 79,420 million yen, due to an increase in funding costs resulting from higher interest on deposits, and an increase in other ordinary expenses resulting from a higher provision for allowance for loan losses. As a result, consolidated ordinary profit increased by 9,225 million yen year on year to 29,135 million yen. Profit attributable to owners of parent increased by 5,157 million yen year on year to 18,857 million yen.

(2) Overview of the Period’s Financial Position [Total Deposits and Assets in Custody] The balance of total deposits at the end of the consolidated fiscal year increased by 164.4 billion yen from the end of the previous consolidated fiscal year to 4.8595 trillion yen, as individual and public-sector deposits decreased but corporate deposits increased. The balance of assets in custody at the end of the consolidated fiscal year increased by 58.8 billion yen from the end of the previous consolidated fiscal year to 435.8 billion yen, as investment trusts, single-premium insurance and financial instruments intermediary balances all increased.

[Loans] The balance of loans at the end of the consolidated fiscal year increased by 182.0 billion yen from the end of the previous consolidated fiscal year to 3.6887 trillion yen, as loans to the public sector decreased but corporate and individual loans increased.

[Securities] The balance of securities at the end of the consolidated fiscal year decreased by 134.7 billion yen from the end of the previous consolidated fiscal year to 1.0551 trillion yen, as equities increased but bonds and other securities decreased. The net unrealized valuation gain on ‘other securities’ at the end of the consolidated fiscal year increased by 43.9 billion yen from the end of the previous consolidated fiscal year to 95.8 billion yen.

[Consolidated Capital Adequacy Ratio (Basel III basis)] The consolidated capital adequacy ratio at the end of the consolidated fiscal year rose by 1.08 percentage points from the end of the previous consolidated fiscal year to 10.41%. Effective from the end of the consolidated fiscal year, following approval from the Financial Services Agency dated March 25, 2026, the Bank changed its method for calculating credit risk-weighted assets from the Standardized Approach to the Foundation Internal Ratings-Based Approach.

(3) Overview of the Period’s Cash Flows Cash flow from operating activities was an outflow of 140,067 million yen, due to an increase in loans and other factors (a decrease of 9,367 million yen year on year). Cash flow from investing activities was an inflow of 190,850 million yen, due to sales and redemptions of securities and other factors (an increase of 284,960 million yen year on year). Cash flow from financing activities was an outflow of 6,572 million yen, due to the payment of dividends and the acquisition of treasury stock, among other factors (a decrease of 2,808 million yen year on year). As a result, cash and cash equivalents stood at 862,119 million yen (an increase of 44,218 million yen year on year).

(4) Future Outlook For the fiscal year ending March 31, 2027, the Bank forecasts consolidated ordinary income of 116.5 billion yen, up 7.9 billion yen from the previous period; ordinary profit of 33.0 billion yen, up 3.8 billion yen; and profit attributable to owners of parent of 21.0 billion yen, up 2.1 billion yen. In addition, the Bank’s non-consolidated earnings forecast is ordinary income of 106.7 billion yen, ordinary profit of 31.2 billion yen, and net income of 20.0 billion yen. For details, please refer to the supplementary explanatory material ‘Overview of Results for the Fiscal Year Ended March 31, 2026 and Full-Year Earnings and Dividend Forecast for the Fiscal Year Ending March 31, 2027.’ Statements regarding future matters such as earnings forecasts are based on information currently available to the Bank and on certain assumptions judged to be reasonable, and actual results may differ significantly due to various factors.

(5) Policy on Profit Distribution and Dividends for the Current and Next Fiscal Year Regarding profit distribution, the Bank’s basic policy is to pay dividends after giving comprehensive consideration to the adequacy of retained earnings, the state of profits, and the business environment, while paying due regard to providing shareholders with stable returns. Under this policy, the year-end dividend for the current period is planned at 126 yen per share, an increase of 18 yen from the previous forecast of 108 yen. As a result, the annual dividend for the current period is expected to be 234 yen per share, an increase of 89 yen from the previous fiscal year’s actual figure of 145 yen. In addition, effective April 1, 2026, the Bank carried out a stock split of its common stock, splitting one share into four shares. The annual dividend for the next fiscal year is forecast at 70 yen per share (including an interim dividend of 35 yen).

Qualitative Commentary — First Quarter, FY Ending March 31, 2026

Source: The Hyakujushi Bank, Ltd., first-quarter financial results summary for the fiscal year ending March 31, 2026 [Japanese GAAP], disclosed August 1, 2025 (https://www2.jpx.co.jp/disc/83860/140120250731524900.pdf).

1. Overview of Operating Results, etc. (1) Explanation of Operating Results Ordinary income for the cumulative first-quarter consolidated period increased by 1,920 million yen year on year to 24,155 million yen, due to an increase in interest income on fund management resulting from higher interest on loans, and an increase in other ordinary income resulting from higher gains on sales of equities and other securities. Ordinary expenses increased by 1,522 million yen year on year to 16,776 million yen, due to an increase in other operating expenses resulting from higher losses on sales of government bonds and other bonds, and an increase in credit costs. As a result, ordinary profit increased by 397 million yen year on year to 7,378 million yen, and quarterly profit attributable to owners of parent increased by 284 million yen year on year to 4,811 million yen.

(2) Explanation of Financial Position Total assets at the end of the first-quarter consolidated accounting period decreased by 50.8 billion yen from the end of the previous consolidated fiscal year to 5.7026 trillion yen, mainly due to a decrease in cash and due from banks. Liabilities decreased by 59.4 billion yen from the end of the previous consolidated fiscal year to 5.3658 trillion yen, mainly due to a decrease in borrowed money. Net assets increased by 8.5 billion yen from the end of the previous consolidated fiscal year to 336.8 billion yen.

(3) Explanation of Forward-Looking Information Such as Consolidated Earnings Forecasts The consolidated earnings forecasts for the cumulative second-quarter period and the full year of the fiscal year ending March 31, 2026 remain unchanged from the figures announced on May 12, 2025.

Qualitative Commentary — First Quarter, FY Ending March 31, 2027

Source: The Hyakujushi Bank, Ltd., first-quarter financial results summary for the fiscal year ending March 31, 2027 [Japanese GAAP], disclosed August 5, 2026 (https://www2.jpx.co.jp/disc/83860/140120260728500662.pdf).

1. Overview of Operating Results, etc. (1) Explanation of Operating Results Ordinary income for the cumulative first-quarter consolidated period increased by 17,066 million yen year on year to 41,221 million yen, due to an increase in interest income on fund management resulting from higher interest on loans, and an increase in other ordinary income resulting from higher gains on sales of equities and other securities. Ordinary expenses increased by 14,906 million yen year on year to 31,682 million yen, due to an increase in other operating expenses resulting from higher losses on sales of government bonds and other bonds. As a result, ordinary profit increased by 2,161 million yen year on year to 9,539 million yen, and quarterly profit attributable to owners of parent increased by 1,368 million yen year on year to 6,179 million yen.

(2) Explanation of Financial Position Total assets at the end of the first-quarter consolidated accounting period increased by 25.4 billion yen from the end of the previous consolidated fiscal year to 5.8712 trillion yen, mainly due to an increase in cash and due from banks and in loans. Liabilities increased by 20.9 billion yen from the end of the previous consolidated fiscal year to 5.4823 trillion yen, mainly due to an increase in deposits and negotiable certificates of deposit. Net assets increased by 4.4 billion yen from the end of the previous consolidated fiscal year to 388.8 billion yen.

(3) Explanation of Forward-Looking Information Such as Consolidated Earnings Forecasts The consolidated earnings forecasts for the cumulative second-quarter period and the full year of the fiscal year ending March 31, 2027 remain unchanged from the figures announced on May 12, 2026.

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.