Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hokkoku Financial Holdings / Event-Driven

<ul>
<li>Japanese banks have been in a relative sweetspot for a couple of years. Higher rates, higher inflation, more FX volatility, better earnings, stronger buybacks. Cross-holding sales up but not spectacular.</li>
<li>The BOJ may raise rates but Trump Tariff retaliation/mitigation is a question. Elections the next two weeks and earnings the 2-3 weeks after that may keep things a question. </li>
<li>But buybacks should pick up. Lots announced in spring end at or before Q1 earnings. And I expect substantial new buybacks to be announced throughout the from Q1 results on.</li>
</ul>


Japanese banks have been in a relative sweetspot for a couple of years. Higher rates, higher inflation, more FX volatility, better earnings, stronger buybacks. Cross-holding sales up but not spectacular.
The BOJ may raise rates but Trump Tariff retaliation/mitigation is a question. Elections the next two weeks and earnings the 2-3 weeks after that may keep things a question. 
But buybacks should pick up. Lots announced in spring end at or before Q1 earnings. And I expect substantial new buybacks to be announced throughout the from Q1 results on.


[Japan Buybacks] - Japan Bank Metrics, Cross-Holdings and Banks Part 1

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Juroku Financial Group / Equity Bottom-Up

<ul>
<li>We update twelve Japanese regional banks, and add two new names, to target beneficiaries of the improving interest rate outlook; also banks with attractive credit quality, capital adequacy and valuations</li>
<li>We identify the value of equity holdings for disposal among these banks; the lack of near-term easing prospects at the US Fed should support JGB yields and domestic bank valuations</li>
<li>We add smaller cap Juroku Financial to our buy list of Tokyo Kiraboshi Financial, Gunma Bank and higher risk option Suruga Bank</li>
</ul>


We update twelve Japanese regional banks, and add two new names, to target beneficiaries of the improving interest rate outlook; also banks with attractive credit quality, capital adequacy and valuations
We identify the value of equity holdings for disposal among these banks; the lack of near-term easing prospects at the US Fed should support JGB yields and domestic bank valuations
We add smaller cap Juroku Financial to our buy list of Tokyo Kiraboshi Financial, Gunma Bank and higher risk option Suruga Bank


Japanese Regional Banks – Adding a Smaller Cap to Our Key Positive Picks

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Hokkoku Financial Holdings / Equity Bottom-Up

<ul><li>Consolidated ordinary income rose to JPY82.2bn (+24.6% YoY), driven by increased interest on loans and securities.</li><li>Hokkoku Bank's core operating profit increased to JPY10.6bn (+56.1% YoY), excluding investment trust gains/losses.</li><li>Non-performing loans at Hokkoku Bank totaled JPY77.6bn, representing 1.99% of total credit, a 0.34pp YoY decline.</li></ul>

Consolidated ordinary income rose to JPY82.2bn (+24.6% YoY), driven by increased interest on loans and securities.Hokkoku Bank's core operating profit increased to JPY10.6bn (+56.1% YoY), excluding investment trust gains/losses.Non-performing loans at Hokkoku Bank totaled JPY77.6bn, representing 1.99% of total credit, a 0.34pp YoY decline.

Hokkoku Financial Holdings (7381 JP): Q3 FY03/26 flash update

<ul><li>Consolidated ordinary income increased by 19.6% YoY to JPY53.7bn, driven by higher interest and dividend income.</li><li>Hokkoku Bank's core gross profit grew 23.9% YoY to JPY24.5bn, with a 50.0% rise in core operating profit.</li><li>Non-performing loans at Hokkoku Bank totaled JPY78.3bn, with a 0.25pp YoY decline in percentage of total credit.</li></ul>

Consolidated ordinary income increased by 19.6% YoY to JPY53.7bn, driven by higher interest and dividend income.Hokkoku Bank's core gross profit grew 23.9% YoY to JPY24.5bn, with a 50.0% rise in core operating profit.Non-performing loans at Hokkoku Bank totaled JPY78.3bn, with a 0.25pp YoY decline in percentage of total credit.

Hokkoku Financial Holdings (7381 JP): 1H FY03/26 flash update

<ul><li>Consolidated ordinary income reached JPY25.8bn (+17.9% YoY), with ordinary profit at JPY8.3bn (+126.2% YoY).</li><li>Hokkoku Bank's core operating profit was JPY3.7bn (+110.0% YoY), with ordinary profit at JPY7.9bn (+141.2% YoY).</li><li>Consolidated gross profit increased to JPY12.2bn (+49.8% YoY), driven by net interest income and other operating income.</li></ul>

Consolidated ordinary income reached JPY25.8bn (+17.9% YoY), with ordinary profit at JPY8.3bn (+126.2% YoY).Hokkoku Bank's core operating profit was JPY3.7bn (+110.0% YoY), with ordinary profit at JPY7.9bn (+141.2% YoY).Consolidated gross profit increased to JPY12.2bn (+49.8% YoY), driven by net interest income and other operating income.

Hokkoku Financial Holdings (7381 JP): Q1 FY03/26 flash update

Japan

The Hokkoku Bank, Ltd. is a regional bank based in Ishikawa prefecture.  The Bank provides banking services such as deposits, loans, and foreign exchange transactions.  Hokkoku Bank also provides other financial services including securities brokerage, letter of credit, lease, credit cards, and real estate services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hokkoku Financial Holdings (7381 JP)

[Japan Buybacks] - Japan Bank Metrics, Cross-Holdings and Banks Part 1

This is the first of several episodes regarding Japanese Banks. I want to make the size palatable and offer base data and framework with which to...

Travis Lundy

Japanese Regional Banks – Adding a Smaller Cap to Our Key Positive Picks

Aside from the usual metrics, we add regional banks' cross-shareholdings as a share of market cap; smaller cap Juroku Financial added to buy list...

Victor Galliano