Equity Analyst

Ravi Kumar

Experienced equity research analyst with a global focus, dedicated to producing high-conviction, value-adding investment calls that elevate client performance.

Shiga Bank (8366 JP): +20% Return Target Achieved, Initiated on 24 September 2025

Shiga Bank (8366 JP): High Capital, Low Valuation - Positioned to Ride Japan’s Banking Recovery

Equity Bottom-Up

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Strong earnings on margin tailwinds: 9M26 net interest income rose +17.1% YoY, driving core revenue +12.8% YoY, supported by a steepening JGB yield curve and reflationary policy backdrop.</li>
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Solid profitability and asset quality: Net income +7.1% YoY with RoE at 4%, underpinned by near-zero LLPs and a low NPL ratio of 1.59%.</li>
<li>
Attractive valuation: Having achieved our prior +20% return target, the share still offers ~10% upside to a target price of ¥9,600, supported by continued NII growth and cost optimization potential.</li>
</ul>



Strong earnings on margin tailwinds: 9M26 net interest income rose +17.1% YoY, driving core revenue +12.8% YoY, supported by a steepening JGB yield curve and reflationary policy backdrop.

Solid profitability and asset quality: Net income +7.1% YoY with RoE at 4%, underpinned by near-zero LLPs and a low NPL ratio of 1.59%.

Attractive valuation: Having achieved our prior +20% return target, the share still offers ~10% upside to a target price of ¥9,600, supported by continued NII growth and cost optimization potential.


Shiga Bank (8366 JP) 9M26 Earnings Review: Navigating Rising Yields Amid Policy Tailwinds