Jimoto Holdings, the Sendai-based holding company for Kirayaka Bank and Sendai Bank, told the Tokyo Stock Exchange on September 25 that both lenders grew for the year to March 2026, with group net income attributable to owners rising to ¥2.58bn from ¥1.56bn a year earlier. Consolidated ordinary income climbed to ¥44.08bn and ordinary profit reached ¥3.16bn, driven mainly by higher loan interest income. Kirayaka Bank logged its second consecutive annual profit, and Sendai Bank posted higher revenue and profit too.
Capital ratios moved in different directions across the group. The consolidated capital adequacy ratio slipped slightly to 8.02%, Kirayaka Bank's ratio improved to 8.62%, and Sendai Bank's fell to 7.67%.
The improvement follows a rough stretch for Kirayaka Bank, which posted a record ¥24.4bn net loss for the year to March 2024 after it reassessed borrowers whose finances had worsened amid post-pandemic price rises, changed its support policy, and booked large credit costs alongside losses from restructuring its securities portfolio. The bank overhauled its management team that September, appointing a new president to lead the turnaround.
That loss also forced a change to the state's own money. Jimoto Holdings and Kirayaka Bank had been due to repay ¥20bn of disaster-special public funds, Class C preferred shares injected in 2009, in September 2024. Because of the loss, the two sides negotiated with the government, and the Financial Services Agency had already approved pushing the deadline back thirteen years, to September 2037.
That is not the only public money on the books. Kirayaka Bank also carries ¥10bn of disaster-special funds due December 2037 and ¥18bn of coronavirus-special funds due September 2048; Sendai Bank is targeting repayment of its own ¥30bn of public capital by March 2036.
| Public funds tranche | Amount | Repayment deadline | Status |
|---|---|---|---|
| Disaster-special funds, Class C preferred (Kirayaka Bank) | ¥20bn | September 2037 (rescheduled from September 2024) | Company says a new capital raise may be considered as needed |
| Disaster-special funds (Kirayaka Bank) | ¥10bn | December 2037 | Retained-earnings buildup underway |
| Coronavirus-special funds (Kirayaka Bank) | ¥18bn | September 2048 | Retained-earnings buildup underway |
| Public funds (Sendai Bank) | ¥30bn | Targeted by March 2036 | Retained-earnings buildup underway |
Jimoto Holdings says Kirayaka Bank can build ¥18.3bn of retained earnings by March 2037 and ¥30bn by March 2048, enough to cover the ¥10bn and ¥18bn tranches through ordinary profit. The rescheduled ¥20bn tranche is a tougher case: the company says building enough retained earnings by the 2037 deadline through normal profit alone is unlikely, though repaying it from shareholders' capital, excluding the coronavirus-related funds, looks achievable. Management says it will consider a new capital raise "as needed" depending on the capital ratio after that repayment.
The group kept its dividend steady, paying ¥5.00 per ordinary share for the year to March 2026 and planning the same payout for the year to March 2027, while paying preferred dividends on its four public-fund-related preferred share classes in full.