The First Bank of Toyama (7184): FY2025 Results Summary — Record Profit and a Sharply Higher Dividend

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

Note: The First Bank of Toyama 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 Japanese-language IR materials, with figures transcribed as reported. Where the Investalk article and the company’s Japanese results briefing differ in how consolidated and non-consolidated figures are labelled, the labelling in the company’s own materials has been followed.

In the results for the fiscal year ended March 31, 2026 announced by The First Bank of Toyama, consolidated ordinary income rose ¥4,634 million year on year to ¥53,147 million, consolidated ordinary profit rose ¥2,030 million to ¥20,989 million, and profit attributable to owners of the parent rose ¥1,701 million to ¥15,055 million (up 12.7% year on year). On a non-consolidated basis, ordinary profit was ¥20,306 million (up 5.6%) and net income was ¥14,786 million (up 6.0%), and both consolidated and non-consolidated net income reached record highs. Core net business profit (excluding gains and losses on cancellation of investment trusts), which represents the bank’s core earnings, was ¥11,236 million, and the bank states that core net business profit set a record high for the fourth consecutive year. For shareholder returns, the annual dividend was raised to ¥84 from ¥34 in the previous fiscal year.

Consolidated Results (Fiscal Year Ended March 31, 2026)

On a consolidated basis, ordinary income expanded mainly on higher interest on loans and discounts and higher interest and dividends on securities, and both ordinary profit and net income increased.

Item (millions of yen)	FY ended Mar 31, 2025	FY ended Mar 31, 2026	Change
Ordinary income	48,513	53,147	+4,634
Ordinary profit	18,959	20,989	+2,030
Profit attributable to owners of parent	13,354	15,055	+1,701

Non-Consolidated Results (Fiscal Year Ended March 31, 2026)

On a non-consolidated basis, expenses were held at around the previous year’s level while interest on loans and discounts and interest and dividends on securities increased substantially, so core net business profit (excluding gains and losses on cancellation of investment trusts) came to ¥11,236 million. In addition to the increase in core net business profit, the bank again recorded a large amount of gains on sales of equities in the fiscal year ended March 31, 2026, lifting both ordinary profit and net income.

Item (millions of yen)	FY ended Mar 31, 2025	FY ended Mar 31, 2026	Change
Gross business profit	21,380	22,504	+1,124
Gross business profit (excluding gains/losses on bonds such as JGBs)	22,826	24,544	+1,717
Core net business profit	10,062	11,867	+1,804
Core net business profit (excluding gains/losses on cancellation of investment trusts)	9,634	11,236	+1,602
Ordinary profit	19,228	20,306	+1,078
Net income	13,951	14,786	+834

Loans, Deposits and Securities

Loans outstanding increased across the business, consumer and local-government categories, reaching ¥1,059.7 billion at the end of March 2026, up ¥35.7 billion from the end of the previous fiscal year. Business loans grew steadily as the bank captured strong capital investment demand from local companies, while in the consumer category housing loans maintained an upward trend. Deposits increased, centred on time deposits, to ¥1,429.8 billion (up ¥51.1 billion), and the securities balance rose to ¥533.0 billion (up ¥65.3 billion); reflecting the rise in long-term interest rates, net unrealised gains on other securities widened to ¥89.8 billion.

Category (¥100 million)	End of Mar 2025	End of Mar 2026	Change
Business	6,820	7,058	+237
Consumer	2,462	2,532	+70
Local government	956	1,006	+49
Total loans outstanding	10,239	10,597	+357

Full-Year Forecast (Fiscal Year Ending March 31, 2027)

For the fiscal year ending March 31, 2027, the bank expects net interest income to increase as it captures rising interest rates, while expenses are expected to rise on study and preparation for a future core banking system upgrade and on growth investment areas such as generative AI. As a result, bottom-line profit is forecast to be slightly lower, although still at a high level. Consolidated ordinary profit is forecast at ¥18,000 million (△14.2% versus the fiscal year ended March 31, 2026) and consolidated profit attributable to owners of the parent at ¥13,000 million (△13.7%). On a non-consolidated basis, ordinary profit is forecast at ¥18,000 million (△11.4%) and net income at ¥13,000 million (△12.1%).

Item (millions of yen)	FY ended Mar 31, 2026 (Actual)	FY ending Mar 31, 2027 (Forecast)	Change vs FY3/2026 (%)
Consolidated ordinary profit	20,989	18,000	△14.2%
Consolidated profit attributable to owners of parent	15,055	13,000	△13.7%
Non-consolidated ordinary profit	20,306	18,000	△11.4%
Non-consolidated net income	14,786	13,000	△12.1%

Shareholder Returns

The shareholder return policy is a payout ratio of 35% or more, with the bank aiming to raise dividends per share through steady profit growth. The annual dividend for the fiscal year ended March 31, 2026 was ¥84 (interim ¥28, year-end ¥56), a substantial increase from ¥34 in the previous fiscal year, and the consolidated payout ratio was 35.2%. For the fiscal year ending March 31, 2027, in line with the policy of a payout ratio of 35% or more, the bank plans an annual dividend of ¥75 (¥37.50 for each of the interim and year-end dividends). In addition, the bank carried out a share buyback of 2,000,000 shares on a scale of ¥5 billion from May 13 to May 15, 2026, and plans to cancel 1,309,700 treasury shares on May 29, 2026, in order to eliminate concerns about future dilution and improve the tradable share ratio.

Medium-Term Plan (Long-Term Vision “First Bank VISION 10” 2nd STAGE)

In the 2nd STAGE of the long-term vision (fiscal 2026 to fiscal 2032), the bank aims to leverage its “financial soundness” and “proactive securities investment” by deploying capital and earnings into growth investment, thereby strengthening its consulting functions and pursuing a further contribution to the regional economy and higher corporate value. The numerical targets (consolidated) for fiscal 2032 are total assets of ¥2 trillion, a profit level of ¥16 billion or more, shareholders’ equity ROE of 10% (net assets ROE of 8%), a core OHR of below 60%, and a capital adequacy ratio of 10%. The fiscal 2025 results (consolidated) were total assets of ¥1.7 trillion, a profit level of ¥15 billion, shareholders’ equity ROE of 12.26% (net assets ROE of 8.57%), a core OHR of 51.65%, and a capital adequacy ratio of 12.30%. The capital adequacy ratio was 11.96% on a non-consolidated basis and 12.30% on a consolidated basis, and progress toward the target level of around 10% in light of the finalisation of Basel III is proceeding steadily.

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.