Shinkin Central Bank reported higher profit for the half to September 2026 and a comprehensive loss in the same set of accounts. Profit attributable to owners of the parent rose 19.3% to ¥26.1bn, and ordinary profit rose 20.2% to ¥36.4bn on ordinary revenue of ¥492.0bn, up 57.3%. Comprehensive income, which adds unrealised valuation swings to net profit, was minus ¥8.4bn against plus ¥117.9bn a year earlier. The bank left its full-year guidance untouched.
Where the gap comes from
The swing sits in other comprehensive income, which was minus ¥34.8bn in the half. Valuation differences on available-for-sale securities subtracted ¥229.6bn. Deferred hedge gains offset ¥195.2bn of that. The accumulated valuation difference on those securities stood at minus ¥700.8bn at the end of September, against minus ¥471.1bn at the end of March. Accumulated deferred hedge gains rose to ¥564.1bn from ¥368.9bn. Consolidated net assets slipped to ¥1.61tn from ¥1.64tn.
The bank's own supplementary slides show the same pattern on a standalone basis: the valuation difference on other securities widened to minus ¥982bn from minus ¥658bn at the end of March, while the bank reports that its interest-rate swaps limit the damage after hedging.
A ¥671.6bn mark on held-to-maturity bonds
A separate notice quantifies the held-to-maturity book. The bank and its consolidated subsidiaries held such bonds with a carrying value of ¥3.97tn and a fair value of ¥3.30tn, an unrealised loss of ¥671.6bn. The notice puts that at 1,195.9% of last year's consolidated ordinary profit of ¥56.2bn and 1,561.5% of last year's net profit of ¥43.0bn. The scope covers every held-to-maturity bond whose fair value can be reasonably calculated. Domestic units are measured at 30 September; overseas subsidiaries at 30 June.
The bank also gives a hedged view. After interest-rate swaps, which turn fixed-rate interest income into floating-rate income to restrain losses when rates rise, the net unrealised loss on those bonds is ¥361.4bn. Unrealised gains of ¥1.2bn bring the unhedged net figure to minus ¥670.4bn. These are valuation figures; held-to-maturity bonds are carried at amortised cost.
Realised losses are also rising
On a standalone basis, ordinary profit fell 6.6% to ¥34.1bn and net profit fell 13.2% to ¥24.9bn. Losses on sales of bonds rose to ¥129.1bn from ¥21.9bn, and the net bond result was a loss of ¥131.8bn against ¥25.7bn a year earlier. The bank describes the sales as maintenance of bonds whose profitability had worsened, funded by higher interest income. It says ordinary profit excluding subsidiary dividends and these bond costs was ¥55bn, up 48.8%.
Guidance and capital
Consolidated guidance for the year to March 2027 stays at ¥61bn of ordinary profit and ¥44bn of net profit. Standalone guidance is ¥58bn and ¥42bn, and dividend forecasts are unchanged. The domestic-standard consolidated capital ratio was 21.23% at the end of September, 0.72 percentage points below March, against a forecast of a 20% range at the end of the fiscal year.