Assess Q1's progress into profitability and the upward revision to the first-half forecast for sustainability toward the full-year targets.

FY2027-Q1 ordinary revenue was ¥4,044 million, ordinary profit was ¥239 million, and quarterly net income attributable to owners of the parent was ¥262 million. The full-year forecasts are ordinary revenue of ¥16,600 million, ordinary profit of ¥1,100 million, and net income of ¥900 million, giving Q1 progress rates of 24.4%, 21.7%, and 29.1%, respectively. Ordinary revenue was broadly in line with the 25% elapsed portion of the fiscal year, while profit was running ahead, particularly net income. Ordinary profit, however, was below one-quarter of the full-year forecast.

In the earnings forecast revision announced on 28 October, the forecast for ordinary revenue for the six months ending September 2026 was raised from ¥8,000 million to ¥8,300 million, ordinary profit from ¥400 million to ¥450 million, and net income from ¥300 million to ¥480 million. Meanwhile, the full-year outlook for the fiscal year ending March 2027 was maintained at ordinary profit of ¥1,100 million and net income of ¥900 million. To achieve the revised first-half forecast, Q2 alone must add ¥211 million in ordinary profit and ¥218 million in net income to the Q1 results.

The improvement in profit resulted from ordinary revenue rising by ¥593 million year on year to ¥4,044 million, while ordinary expenses also increased by ¥377 million to ¥3,805 million. Operating profit was not disclosed in the earnings summary, and cash flow from operating activities was also not disclosed for Q1. Accordingly, the sustainability of the earnings improvement cannot be fully confirmed from the bank's ordinary profit and net income alone. Extraordinary income was limited to a ¥5 million gain on disposal of fixed assets, and there was no impairment loss in Q1.

In FY2027-H1, the next reporting period, we will assess not only whether ordinary profit of ¥450 million and net income of ¥480 million are achieved, but also their composition. In particular, the key points will be whether Q2 standalone profit meets the required amounts, whether the full-year forecasts of ¥1,100 million and ¥900 million are maintained after the first half, and whether supplementary indicators equivalent to operating profit or a breakdown of net interest income and expenses are disclosed.