Procrea Holdings, the Tokyo Stock Exchange Prime-listed banking group (ticker 7384), disclosed on July 27 that its consolidated subsidiary Aomori Michinoku Bank is carrying a ¥12.07bn unrealized loss on the held-to-maturity bonds in its portfolio. The figure covers all such bonds for which fair value can reasonably be calculated, as of June 30, 2026, the end of the first quarter of the fiscal year running to March 2027.
The loss is a paper one, not a booked one. Held-to-maturity bonds sit on the balance sheet at amortized cost rather than fair value, so the gap only becomes a real earnings hit if the bank has to sell before the bonds mature. The book value of the affected securities was ¥225.36bn against a fair value of ¥213.34bn. Aomori Michinoku Bank also held ¥49mn of unrealized gains elsewhere in the portfolio, netting the group's overall unrealized position to negative ¥12.02bn.
| Metric | Value |
|---|---|
| Unrealized loss on held-to-maturity bonds | ¥12.07bn |
| Book value of affected securities | ¥225.36bn |
| Fair value of affected securities | ¥213.34bn |
| Offsetting unrealized gains elsewhere | ¥49mn |
| Net unrealized position | -¥12.02bn |
| Ratio to year-ended-March-2026 ordinary profit | 184.1% |
| Ratio to year-ended-March-2026 net income attributable to parent | 319.0% |
Procrea sized the disclosure against its own recent results. The ¥12.07bn shortfall equals 184.1% of the group's consolidated ordinary profit of ¥6.56bn for the year ended March 2026, and 319.0% of net income attributable to parent shareholders, which was ¥3.78bn that year. In other words, the paper loss on this one bond book is more than three times what the whole group earned for shareholders last year, a gap that says more about how far bond prices have moved against the bank's holdings than about its underlying profitability.
Despite that scale, Procrea said the consolidated earnings and dividend forecasts it published on May 15, 2026 for the year ending March 2027 remain unchanged. The company added the standard caution that any forward-looking figures rest on information and assumptions it currently judges reasonable, and that actual results could differ. For now, the notice is a snapshot of quarter-end exposure, not a change to what Aomori Michinoku Bank or its parent expect to earn over the full year.