North Pacific Bank, Ltd. (8524) AI Stock Analysis

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North Pacific Bank, Ltd.

(TSE/TYO:8524)

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Rating:62Neutral

Price Target:JPY 1,135.00▼(-8.47% Downside)

Action:reiterated

Date:08/19/26

The overall score reflects a balance of strong technical momentum and reasonable valuation against a backdrop of fragile financial health. The stock's bullish trend and moderate P/E are the primary positive drivers. However, significant concerns about balance sheet strength and cash flow volatility weigh heavily on the score, capping the upside.

Positive Factors

Accelerating Revenue GrowthThe sharp 2026 revenue acceleration indicates materially stronger business activity than in the prior three years. If this higher level of growth persists, it can expand the earnings base and improve the bank’s ability to invest in customer relationships and core financial services.

Negative Factors

High and Volatile LeverageElevated and volatile leverage remains a structural balance-sheet constraint for the bank. A debt-heavy capital structure can reduce financial flexibility, increase sensitivity to credit conditions, and limit the capacity to absorb weaker earnings while still funding future business growth.

North Pacific Bank, Ltd. (8524) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 462.41B
Dividend Yield: 2.62%
Average Volume (3M): 1.73M
Price to Earnings (P/E): 16.7
Beta (1Y): 1.41
Revenue Growth: 24.66%
EPS Growth: 33.09%
Country: Japan
Employees: 2,828
Sector: General
Sector Strength: 55
Industry: Banks - Regional

North Pacific Bank, Ltd. Business Overview & Revenue Model

Company Description

North Pacific Bank, Ltd. delivers a broad spectrum of financial services and banking solutions to individual clients and corporate entities throughout Japan. Its primary services encompass deposit accounts, negotiable certificates of deposit, and var...

How the Company Makes Money

North Pacific Bank, Ltd. makes money primarily through banking income generated from its financial intermediation and fee-based services. Key revenue streams generally include: (1) Net interest income: earnings from the spread between interest receiv...

North Pacific Bank, Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows strong revenue and net income growth with improving margins (Score 70), but the balance sheet is fragile with thin equity and a concerning drop in capital (Score 45). Cash flow is highly volatile with weakened coverage ratios (Score 50). Overall, growth is promising but offset by capital and liquidity risks.

Income Statement

70Positive

Balance Sheet

45Neutral

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	259.08B	233.22B	146.52B	129.68B	121.27B	117.72B
Gross Profit	230.27B	203.39B	134.58B	123.36B	114.38B	114.01B
EBITDA	40.28B	47.51B	37.59B	28.03B	23.25B	25.20B
Net Income	27.99B	25.60B	20.61B	12.83B	9.65B	11.76B
Balance Sheet
Total Assets	13.22T	13.27T	13.45T	13.24T	12.52T	13.54T
Cash, Cash Equivalents and Short-Term Investments	2.07T	2.28T	2.65T	3.06T	2.80T	4.34T
Total Debt	1.33T	1.47T	1.70T	1.77T	941.78B	4.01T
Total Liabilities	12.82T	12.88T	13.06T	12.80T	12.11T	13.12T
Stockholders Equity	394.66B	387.50B	380.48B	442.68B	403.35B	416.81B
Cash Flow
Free Cash Flow	0	-385.97B	33.66B	983.81B	-1.37T	1.73T
Operating Cash Flow	0	-375.13B	39.05B	988.14B	-1.36T	1.74T
Investing Cash Flow	0	19.97B	-328.51B	-703.01B	-172.00B	-16.14B
Financing Cash Flow	0	-14.67B	-9.05B	-19.16B	-4.82B	-4.03B

North Pacific Bank, Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1240.00

Price Trends

50DMA1259.41Negative

100DMA1215.57Positive

200DMA1091.47Positive

Market Momentum

MACD-15.68Negative

RSI53.82Neutral

STOCH90.04Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8524, the sentiment is Positive. The current price of 1240.00 is above the 20-day moving average (MA) of 1170.45, below the 50-day MA of 1259.41, and above the 200-day MA of 1091.47, indicating a neutral trend. The MACD of -15.68 indicates Negative momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8524.

North Pacific Bank, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8524 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7380	77Outperform	JPY 413.20B	12.32	―	2.52%	16.95%	53.47%
JP:8368	72Outperform	JPY 541.65B	15.76	6.15%	2.14%	21.29%	68.12%
JP:7173	71Outperform	JPY 423.12B	8.76	―	1.75%	14.90%	8.34%
JP:8358	67Neutral	JPY 474.25B	11.09	13.74%	2.80%	14.05%	106.68%
JP:8524	62Neutral	JPY 459.84B	16.66	―	2.62%	24.66%	33.09%
JP:8304	59Neutral	JPY 439.17B	14.30	6.44%	2.98%	12.43%	39.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8524 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8524	North Pacific Bank, Ltd.	1240.00	520.57	72.36%
JP:8304	Aozora Bank	3190.00	830.45	35.20%
JP:8368	Hyakugo Bank	2059.00	1110.59	117.10%
JP:8358	Suruga Bank	2789.00	1272.23	83.88%
JP:7173	Tokyo Kiraboshi Financial Group, Inc.	1466.00	488.08	49.91%
JP:7380	Juroku Financial Group,Inc.	2301.50	1145.43	99.08%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

North Pacific Bank, Ltd. AI Stock Analysis