Banks Equity & Credit Research Analyst

D V D Ravi Kumar, CFA

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

Equity Bottom-Up

<ul>
<li>Shiga Bank is well-leveraged to Japan’s rate hike cycle and regional revitalization strategy, with higher market-rate loan exposure than peers, enabling stronger earnings sensitivity to rising rates.</li>
<li>Core profitability is improving, driven by double-digit NII growth and rising NIMs. A CET1 ratio of 14.0% supports capital returns, selective M&amp;A, and ¥700bn in planned loan growth through 2029.</li>
<li>Despite a +63% YTD rally, shares remain undervalued at 0.7x P/B. Our target of ¥7,850/share implies ~+20% upside, supported by improving RoE, operational efficiencies, and capital deployment.</li>
</ul>


Shiga Bank is well-leveraged to Japan’s rate hike cycle and regional revitalization strategy, with higher market-rate loan exposure than peers, enabling stronger earnings sensitivity to rising rates.
Core profitability is improving, driven by double-digit NII growth and rising NIMs. A CET1 ratio of 14.0% supports capital returns, selective M&amp;A, and ¥700bn in planned loan growth through 2029.
Despite a +63% YTD rally, shares remain undervalued at 0.7x P/B. Our target of ¥7,850/share implies ~+20% upside, supported by improving RoE, operational efficiencies, and capital deployment.


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