Chugin Financial Group, parent of Chugoku Bank, said net profit attributable to shareholders rose 40.3% to ¥13.9bn in the three months to June 2026, from ¥9.9bn a year earlier. Ordinary revenues nearly doubled, up 93.6% to ¥109.6bn, as domestic interest-rate rises lifted lending income and securities dividends, and as the group booked larger gains on stock sales.
Group ordinary expenses rose even faster, up 114.7% to ¥89.4bn, driven mainly by losses on bond sales and higher interest paid on deposits. The bank is actively swapping its securities book: it disclosed ¥19.9bn in bond-related losses for the quarter, up from ¥17.6bn a year earlier, as it sold low-yield government bonds to reposition for higher rates. Those losses were largely offset by ¥18.3bn in stock-related gains, versus ¥15.3bn a year earlier, helped by market conditions during the quarter.
| Metric | Apr-Jun 2026 | Apr-Jun 2025 | Change |
|---|---|---|---|
| Ordinary revenues | ¥109.6bn | ¥56.6bn | +93.6% |
| Ordinary expenses | ¥89.4bn | ¥41.6bn | +114.7% |
| Ordinary profit | ¥20.3bn | ¥15.0bn | +35.2% |
| Net profit (parent) | ¥13.9bn | ¥9.9bn | +40.3% |
| Bond-related losses | ¥19.9bn | ¥17.6bn | Loss both years |
| Stock-related gains | ¥18.3bn | ¥15.3bn | +19.6% |
The securities portfolio itself shrank ¥73.9bn from March levels to ¥3.03tn as the bank kept clearing low-yield holdings. Comprehensive income, which captures unrealized securities gains, more than doubled to ¥62.2bn from ¥30.6bn, up 102.9%. Total assets grew to ¥11.4tn and ordinary profit rose 35.2% to ¥20.3bn.
Chugin left its outlook unchanged: full-year net profit guidance stays at ¥45bn and the annual dividend forecast remains ¥102 per share, split ¥51 at the half-year mark and ¥51 at year-end. The disclosure covers only Chugin's own results; the pattern of bond losses offset by rate gains and equity sales should not be read as representative of Japan's regional banking sector generally.