島根銀行 announced a plan to raise ¥10 billion through a private placement capital increase underwritten by SBI Shinsei Bank,Limited. It also plans to sell approximately ¥60 billion of securities in January–March 2027 and is expected to record a loss on sale of approximately ¥6.5 billion.
島根銀行 held a press conference at its head office in Matsue and announced that it would raise ¥10 billion through a private placement capital increase underwritten by SBI Shinsei Bank,Limited, a subsidiary of SBI Holdings. It also plans to sell approximately ¥60 billion of securities with valuation losses in January–March 2027 and record a loss on sale of approximately ¥6.5 billion.
This will be the third investment in 島根銀行 by the SBI Group and the largest to date. The transaction is scheduled to be carried out in late December, and 島根銀行 aims to strengthen its financial base and improve profitability.
Due to the loss on the sale of securities, standalone net income for the fiscal year ending March 2027 is expected to be negative, potentially shifting from the previous forecast of a profit to a loss. The bank expects to return to profit for the fiscal year ending March 2028 as profitability improves. The capital ratio is expected to rise from 7.09% at March 2026-end to approximately 8.5% for the fiscal year ending March 2027.
President Kazuhiko Nagaoka (長岡一彦) emphasized the contribution to the regional economy by using the bank’s capacity to provide funding for local needs and problem-solving. Executive Managing Director Masanobu Ogura (小倉将信) of SBI Shinsei Bank,Limited said that stronger capital would allow the bank to replace low-profitability assets and direct the resulting funds toward lending to the region and growth investment.