Shinkin Central Bank Reports First Quarter Loss on Securities Holdings

TOKYO, Jul 29 (Pulse News Wire) – Shinkin Central Bank (8421.T) reported a total unrealized loss of ¥594.0 billion on securities holdings as of March 31, 2026, for the fiscal year ending March 2027. This represents a significant decline compared to the previous fiscal year's consolidated ordinary profit of ¥56.16 billion.

Additionally, the bank’s net income attributable to shareholders was ¥43.01 billion for the same period last year. In a separate statement, the bank noted that despite the losses, there would be no changes to previously announced forecasts for the fiscal year ending March 2027, which were disclosed on May 20, 2026. However, the bank emphasized that future performance could differ due to various factors. As of June 30, 2026, the book value of the targeted securities stood at ¥3.86 trillion, while their fair value was assessed at ¥3.27 trillion.

Furthermore, the total unrealized gain on securities held-to-maturity was ¥4.400 billion, resulting in a net unrealized loss of -¥589.6 billion for the quarter. The bank also highlighted the impact of interest rate swaps used for hedging against interest rate risk. As of March 31, 2026, the net unrealized loss on securities held-to-maturity was mitigated by -¥325.9 billion through these swaps. The bank stated that such strategies aim to convert fixed-rate interest income into floating-rate income, thereby reducing potential losses from rising interest rates.