Okinawa Financial Group said the held-to-maturity bonds of its consolidated subsidiary Okinawa Bank were worth ¥11.3bn less than their carrying value at the end of the second quarter of the year to March 2027. The group disclosed the figure in a notice dated October 22, 2026.
The size of the gap
The notice puts the bonds' book value at ¥42.8bn and their market value at ¥31.5bn. The total unrealized loss is ¥11.3bn. It covers all held-to-maturity bonds whose market value can be reasonably calculated.
The group sets that gap against results for the year to March 2026: ¥15.8bn of consolidated ordinary profit and ¥11.3bn of profit attributable to owners of the parent. The unrealized loss is 71.6% of the first figure and 100.2% of the second.
The notice records no unrealized gains on these bonds, so the net position is the same ¥11.3bn shortfall. The group and its consolidated subsidiaries close their second quarter on September 30.
What it does not change
The shortfall is a valuation difference on holdings, not a realized loss. The notice reports no sale of the bonds. The group said the consolidated earnings forecast and dividend forecast for the year to March 2027, published on May 15, 2026, are unchanged.
The notice gives no cause for the decline in market value and does not say whether the group plans any action on the bonds. The comparison uses last year's full-year profit as a yardstick, so it measures scale rather than any effect on current-year results.
For earlier results from the group, see Earlier Tokyo Brief coverage.