The Gunma Bank, Ltd.

Non-consolidated loan balance reached ¥7,226,164 million (up ¥381,052 million, +5.5% from the previous fiscal year-end), continuing its expansion. By industry, the balance is concentrated in real estate, manufacturing, and individual customers. Since October 2022, the company has rolled out the "Tsunagu Process," which captures approximately 30,000 needs from over 10,000 corporate customers. This regionally rooted customer base is a proprietary asset that competitors would find difficult to replicate in a short period.

Consolidated non-interest business profit for FY2026 (ending March 2026) reached ¥29,339 million, up ¥3,738 million year on year, marking a new record high. This was driven by corporate fee income of ¥10,742 million (increase in syndicated loan fees) and income from entrusted financial assets of ¥9,507 million (expansion of Gungin Securities' advisory-type sales). Consolidated entrusted financial assets balance reached ¥1,487.0 billion (up ¥234.4 billion from the previous fiscal year-end).

For FY2026 (ending March 2026), the total capital adequacy ratio was 15.13% (up 2.01 percentage points year on year), and the core CET1 ratio was 13.50%, both substantially exceeding the internationally harmonized standard. RORA stood at 1.48% (achieving the medium-term management plan target of 1.2% or higher), and ROE was 9.95% (up 2.23 percentage points year on year). Appropriate management of risk assets and accumulation of profits underpin a high level of financial soundness.

Led by high-growth areas such as cross-border loans (¥269.1 billion), structured finance (¥241.1 billion), and overseas branches (¥180.6 billion), lending to mid-sized/small businesses and individuals also grew steadily. For FY2027 (ending March 2027), assuming continued growth in loan balances, net interest income is projected at ¥111.7 billion (up ¥6.5 billion year on year).

Through strengthened collaboration with Gungin Securities, consolidated entrusted financial assets reached ¥1,487.0 billion (up ¥234.4 billion from the previous fiscal year-end). Non-interest income expanded, with corporate fee income of ¥10,742 million and income from entrusted financial assets, etc. of ¥9,507 million. Non-interest business profit for FY2027 (ending March 2027) is projected at ¥35,000 million (up ¥5.7 billion year on year).

Against a target to reduce the book value of listed policy-held shares by ¥20.0 billion over the five years from FY2023 (ended March 2023) to FY2027 (ending March 2027), progress as of the end of March 2026 stood at 84% (¥21.4 billion). The medium-term management plan sets a target to bring the ratio of policy-held shares (market value) to consolidated net assets below 10% by the end of March 2028.

On March 26, 2026, the share exchange agreement and management integration agreement were executed. Through a share exchange in which 1.125 shares of Daishi Hokuetsu FG will be allotted for each share of Gunma Bank, Gunma Bank is scheduled to become a wholly owned subsidiary on April 1, 2027 (planned). The combined entity is scheduled to change its trade name to "Gunma Niigata Financial Group, Inc." The integration aims to achieve economies of scale, enhance consulting capabilities, and build a sustainable business model.

The basic policy is a progressive dividend with a target payout ratio of around 40%. The annual dividend for FY2026 (ending March 2026) was ¥62 (up ¥17 year on year), and the forecast for FY2027 (ending March 2027) is ¥70 (up ¥8, marking the sixth consecutive year of dividend increases). Combined with total dividends of ¥23.4 billion and share buybacks of ¥6.0 billion, the total shareholder return ratio is projected at 50.1%, maintaining above 50% for the fourth consecutive fiscal year.