First Bank of Toyama: Profit Forecast Raised to ¥14bn, Dividend ¥82

First Bank of Toyama raised its consolidated earnings forecasts for the year ending March 2027. Net profit is now forecast at ¥14 billion, up from ¥13 billion, while ordinary profit is projected at ¥19.7 billion, up from ¥18 billion.

The revised forecasts represent increases of 9.4% for ordinary profit and 7.7% for net profit compared with the previous outlook. However, ordinary profit, net profit and earnings per share are all expected to fall short of the previous year's results, so the upward revision should not be mistaken for year-on-year earnings growth.

The bank also raised its consolidated forecasts for the six months from April to September 2026. Ordinary profit is now projected at ¥12.6 billion, up from ¥11 billion, while net profit is forecast at ¥8.9 billion, up from ¥8 billion.

• Factors behind the upward revision: On a non-consolidated basis, gains related to securities and lower credit-related expenses are expected to exceed initial estimates. The consolidated revision mainly reflects changes to the bank-only forecast.
• Reason for the full-year revision: The bank expects higher net interest income in light of rising interest rates.

Non-consolidated first-half net profit is expected to rise to ¥9.3 billion from ¥7.094 billion a year earlier. Consolidated ordinary income is projected at ¥33.3 billion, up from ¥24.916 billion in the same period last year, while non-consolidated ordinary income is forecast at ¥29.9 billion, compared with ¥21.192 billion. The bank cited increased gains on securities sales as the main driver of the year-on-year rise in ordinary income.

Alongside the earnings upgrade, First Bank of Toyama raised its annual dividend forecast for the year ending March 2027 to ¥82 from ¥75. That is an increase from the previous forecast, but a decline from the previous year's ¥84.

The bank changed its shareholder return policy in April 2025, setting a dividend payout ratio of at least 35% of net profit attributable to owners of parent. The latest dividend forecast increase reflects the upward revisions to its first-half and full-year earnings outlooks.