Procrea Holdings, Inc. said the held-to-maturity bonds of its consolidated bank subsidiary carried unrealized losses of ¥14.448bn at the end of the second quarter of the year to March 2027, a quarter that ended on 30 September 2026. The same notice says the company is not changing its earnings or dividend forecasts.
The size of the markdown
The company put the loss against the profits it reported for the year to March 2026. The ¥14.448bn is 220.3% of consolidated ordinary profit of ¥6.557bn and 381.8% of net profit attributable to owners of the parent, which was ¥3.783bn. Those ratios compare a market-value gap on a bond book at one date with a full year of earnings. They are not a loss booked against earnings.
| Item | Amount |
|---|---|
| Gross unrealized losses | ¥14.448bn |
| Unrealized gains | ¥13mn |
| Net unrealized loss | ¥14.435bn |
| Book value of covered bonds | ¥216.59bn |
| Market value of covered bonds | ¥202.155bn |
| Consolidated ordinary profit, year to March 2026 | ¥6.557bn (losses equal 220.3%) |
| Net profit attributable to parent, year to March 2026 | ¥3.783bn (losses equal 381.8%) |
The book value of the covered bonds is ¥216.59bn and their market value is ¥202.155bn. The notice covers all held-to-maturity bonds whose market value can be reasonably calculated.
Gross versus net
Two figures in the notice should not be swapped. The ¥14.448bn is the gross total of unrealized losses. Unrealized gains on the same bonds were ¥13mn, so the net unrealized loss was ¥14.435bn. The group's quarter-end date and its bank subsidiary's are the same, 30 September.
What the company said about earnings
Procrea said the consolidated earnings forecast and dividend forecast for the year to March 2027, published on 15 May 2026, are unchanged. The notice describes the figures as unrealized losses (含み損) and announces no impairment charge, sale or realized loss. It does not break down the holdings or give a cause for the gap between book and market value.
As usual, the notice carries a warning that forward-looking statements rest on information the company has now and on assumptions it considers reasonable, and that actual results may differ materially.