Shinkin Central Bank, the wholesale institution for Japan's cooperative shinkin banks, said consolidated net profit attributable to owners of the parent rose 25.8% year-on-year to ¥13.5bn in the three months to June, the opening quarter of the fiscal year ending March 2027. Consolidated ordinary profit climbed 27.4% to ¥58.5bn. Management credited continued purchases of foreign-currency floating-rate bonds bought ahead of rising rates, along with a push into corporate and government-related lending, for lifting interest income.
The consolidated capital adequacy ratio under domestic standards stood at 21.37%, down 0.58 point from March but still well clear of the bank's 15%-plus target. The quarter's profit run-rate put the bank 30.7% of the way to its unchanged full-year consolidated net profit target of ¥44.0bn.
| Metric | Value | Change / note |
|---|---|---|
| Consolidated net profit attributable to parent | ¥13.5bn | +25.8% year-on-year |
| Consolidated ordinary profit | ¥58.5bn | +27.4% year-on-year |
| Consolidated capital adequacy ratio (domestic standard) | 21.37% | -0.58pt from March 2026 |
| Hedged unrealized loss, other securities | -¥68.7bn | Improved ¥94.2bn from March 2026 |
| Gross unrealized loss, held-to-maturity bonds | -¥594.0bn | Equal to 1,057.7% of prior-year ordinary profit |
| Hedge-adjusted unrealized loss, held-to-maturity bonds | -¥325.9bn | After interest-rate swap hedges |
On a standalone basis, results moved the other way: ordinary profit fell 18.1% to ¥17.4bn and net profit dropped 27.2% to ¥13.0bn, a decline the bank attributed largely to the absence of a subsidiary dividend booked a year earlier. Meanwhile the post-hedge unrealized valuation loss on the bank's other-securities book improved to ¥68.7bn from ¥162.9bn at the end of March, a swing of ¥94.2bn, which the bank linked to trimming underperforming bonds and gains on equity holdings inside its trust funds.
A second, separate notice filed the same day gave a fuller picture of where the bond-market pain still sits. Gross unrealized losses on Shinkin Central Bank's held-to-maturity bond portfolio totaled ¥594.0bn at the same quarter-end. That gap equaled 1,057.7% of the ¥56.2bn consolidated ordinary profit the bank booked for the year to March 2026, and 1,381.2% of the ¥43.0bn net profit attributable to owners of the parent booked that year. After interest-rate swaps that convert fixed-rate bond income into floating-rate income, the net unrealized loss narrowed to ¥325.9bn. The book value of the affected bonds was ¥3.86tn against a market value of ¥3.27tn.
The bank left its full-year earnings and dividend forecasts for the year to March 2027, first issued in May, unchanged. Preferred-equity holders are still guided to a ¥6,500 per-unit annual dividend, and the consolidated net profit target remains ¥44.0bn.