Revisions to the full-year earnings forecast for the fiscal year ending March 2027, recognition of a loss on the sale of securities, a review of the KGI in the medium-term management plan, and reductions in executive compensation
THE SHIMANE BANK,LTD. (filing company)
Securities carrying valuation losses (planned sale amount: ¥60,000 million)
To view the arrival of a “world with interest rates” as an opportunity and further strengthen regional financial capabilities by enhancing earnings power and funding capacity through portfolio reconstruction
Loss on sale of securities: ¥6,500 million (estimated, to be recognized in the fiscal year ending March 2027)
Fiscal year ending March 2027 (sale scheduled for January to March 2027)
The full-year earnings forecast for the fiscal year ending March 2027 has been revised. Consolidated ordinary revenue changed from ¥12,160 million to ¥13,600 million, ordinary profit from ¥330 million to a ¥5,960 million loss, and net income attributable to owners of the parent from ¥270 million to a ¥5,980 million loss. On a non-consolidated basis, ordinary revenue changed from ¥9,980 million to ¥11,430 million, ordinary profit from ¥290 million to a ¥6,000 million loss, and net income from ¥250 million to a ¥6,010 million loss.
Company response
Monthly compensation for the representative director and chairman and the representative director and president reduced by 30% (for the 3 months from January 2027 through March 2027)
A significant return to profitability is expected in the fiscal year ending March 2028. For reinvestment in securities, the company will strengthen risk management through cooperation with the SBI Group and respond cautiously and flexibly while shortening duration, focusing mainly on Japanese government bonds and similar instruments.
| Item | Details |
|---|---|
| Event name | Revisions to the full-year earnings forecast for the fiscal year ending March 2027, recognition of a loss on the sale of securities, a review of the KGI in the medium-term management plan, and reductions in executive compensation |
| Date of occurrence | 16 October 2026 (date on which the sale of securities was decided) |
| Date recognized / date notice received | 16 October 2026 (date on which the company announced its decision to sell securities) |
| Subject Entity | THE SHIMANE BANK,LTD. (filing company) |
| Target Locations / Products | Securities carrying valuation losses (planned sale amount: ¥60,000 million) |
| Cause | To view the arrival of a “world with interest rates” as an opportunity and further strengthen regional financial capabilities by enhancing earnings power and funding capacity through portfolio reconstruction |
| Amount of Impact on Business Performance | Loss on sale of securities: ¥6,500 million (estimated, to be recognized in the fiscal year ending March 2027) |
| Accounting period in which recognized | Fiscal year ending March 2027 (sale scheduled for January to March 2027) |
| Impact on Earnings Forecast | The full-year earnings forecast for the fiscal year ending March 2027 has been revised. Consolidated ordinary revenue changed from ¥12,160 million to ¥13,600 million, ordinary profit from ¥330 million to a ¥5,960 million loss, and net income attributable to owners of the parent from ¥270 million to a ¥5,980 million loss. On a non-consolidated basis, ordinary revenue changed from ¥9,980 million to ¥11,430 million, ordinary profit from ¥290 million to a ¥6,000 million loss, and net income from ¥250 million to a ¥6,010 million loss. |
| Directors' and officers' liability | Monthly compensation for the representative director and chairman and the representative director and president reduced by 30% (for the 3 months from January 2027 through March 2027) |
| Outlook | A significant return to profitability is expected in the fiscal year ending March 2028. For reinvestment in securities, the company will strengthen risk management through cooperation with the SBI Group and respond cautiously and flexibly while shortening duration, focusing mainly on Japanese government bonds and similar instruments. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To view the arrival of a “world with interest rates” as an opportunity, enhance earnings power and funding capacity through portfolio reconstruction, and further strengthen regional financial capabilities.