Shimizu Bank raised its profit and dividend forecasts on 26 October, saying rising interest rates pushed its funds-management income above what it had planned. The revision replaces forecasts the bank published on 15 May.
Full year
For the fiscal year ending March 2027, the bank now forecasts consolidated ordinary profit of ¥4.7bn, up from ¥3.8bn, a 23.6% increase. Net profit attributable to parent shareholders is forecast at ¥2.9bn, against ¥2.5bn before. Ordinary revenue is forecast at ¥39.6bn, up from ¥37.8bn. Last year's consolidated ordinary profit was ¥3.13bn.
First half
The half-year to September carries its own, separate upgrade. Consolidated ordinary profit is now forecast at ¥3.4bn, up from ¥2.4bn, a rise of 41.6%. Net profit is forecast at ¥2.2bn, up from ¥1.7bn. Ordinary revenue is forecast at ¥20.1bn, against a previous forecast of ¥18.5bn.
Dividend
The interim dividend forecast rises ¥5 to ¥35 and the year-end forecast rises ¥5 to ¥35. That takes the annual forecast to ¥70 from ¥60, a ¥10 increase. The bank said it wanted to reward shareholders' support. Its stated shareholder-return policy keeps a stable ¥60 dividend as the base and aims progressively for a payout ratio of about 30%.
The stated reason
Shimizu Bank said that, on a standalone basis, interest on loans and interest and dividends on securities exceeded its initial expectations as rates rose. It also cited the financial and economic environment and recent earnings trends in raising the full-year outlook. The revised figures are forecasts, and the notice does not break out how much each income line contributed.