Shimizu Bank Q3 EPS Soars to ¥77, Defying Turnaround Skeptics
Shimizu Bank, traded on the Tokyo Stock Exchange under the ticker TSE:8364, has released its Q3 2026 financial results, showcasing significant growth. The bank reported total revenue of ¥8.1 billion and a basic earnings per share (EPS) of ¥77.15. This marks a substantial increase from the ¥6.4 billion revenue and ¥49.74 EPS recorded during Q3 2025.
Impressive Quarterly Growth
Shimizu Bank’s quarterly results reveal a compelling turnaround. Total revenue for the trailing twelve months (TTM) sits at ¥27.9 billion, with a TTM EPS of ¥216.42. Notably, net income rose from ¥1.86 billion in Q3 2025 to ¥2.44 billion in Q3 2026.
- Q3 2026 Financial Highlights:
- Total Revenue: ¥8.1 billion
- Basic EPS: ¥77.15
- Trailing Twelve Month Revenue: ¥27.9 billion
- Trailing Twelve Month EPS: ¥216.42
- Quarterly Net Income: ¥2.44 billion
Turning the Profit Tide
The transition from previous losses to current profits has captured investors’ attention. Shimizu Bank’s return to profitability is marked by a stark change from trailing losses of ¥2.38 billion and ¥2.24 billion in Q2 and Q3 2025, respectively. The improved margins indicate that recent growth is not merely a function of increased revenue but is supported by healthier earnings quality.
Valuation Insights
Currently, Shimizu Bank’s share price stands at ¥2,912, yielding a trailing price-to-earnings ratio (P/E) of 13.5x. This figure is lower than the broader Japanese market average of 15.3x and the banking industry average of 14.9x. However, concerns arise as the share price significantly exceeds the discounted cash flow (DCF) fair value of ¥1,568.70.
Credit Quality Concerns
One alarming statistic is the bank’s allowance for bad loans, set at 55%. This ratio is viewed as low given non-performing loans ranging between ¥13.5 billion and ¥14.7 billion. The total loan portfolio consistently exceeds ¥1.25 billion, raising questions about long-term profitability.
- Credit Quality Metrics:
- Bad Loan Allowance: 55%
- Non-Performing Loans: ¥13.5 billion to ¥14.7 billion
- Total Loans: Approximately ¥1.28 billion
Investor Outlook
As Shimizu Bank navigates its recovery story, analysts emphasize the importance of long-term trends over single-quarter performances. Concerns regarding valuation, persistent earnings contraction, and insufficient bad loan provisions present risks for investors. Potential investors may seek safer opportunities with stronger balance sheets and higher risk resilience.
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