Iyogin Holdings, Inc.
5830・Prime Market・Banks
Business
Iyogin Holdings, Inc. is a bank holding company established in October 2022 through a sole-share transfer by The Iyo Bank. With 17 consolidated subsidiaries, the group's core business is Banking (The Iyo Bank, 150 head office and branch locations), alongside Leasing (Iyogin Lease), Information Processing & Software Development Services (Iyogin Computer Service), and securities business (Shikoku Alliance Securities), among others. Its primary business area is the Seto Inland Sea region centered on Ehime Prefecture, serving individuals, small and medium-sized enterprises, and local governments as its main customers. It is a community-based financial group that comprehensively provides deposit and lending services, Securities Investment, Fee Business, and asset management services.
Business Model
The core of Iyo Bank's earnings comes from fund income, generated by collecting deposits from the region and deploying them into loans (¥6,107,233 million on a consolidated basis as of the end of March 2026) and securities (¥1,705,787 million). In addition, the bank adopts a composite revenue model that layers on fee income from the growth of assets in custody such as investment trusts and insurance (consolidated balance of ¥1,008,322 million), as well as revenue from peripheral group businesses including intra-group IT outsourcing, securities intermediation, and leasing.
Company Strengths
Consolidated loans outstanding reached ¥6,107,233 million at the end of March 2026, up ¥268,070 million from the previous fiscal year-end, marking 29 consecutive years of increase. Domestic loans by industry are diversified across transportation, real estate, manufacturing, and other sectors, with the balance of loans to small and medium-sized enterprises (Iyo Bank, unconsolidated) reaching ¥3,408,400 million. The depth of the customer base built through many years of community-based business is a unique strength that competitors cannot easily replicate in a short period.
Due to the drop-off of expenses related to the construction of the next-generation core banking system that were recorded in the previous fiscal year, non-personnel expenses at Iyo Bank (unconsolidated) decreased by ¥5,805 million year on year to ¥29,314 million. Total consolidated expenses also decreased by ¥4,426 million year on year to ¥63,947 million, and the consolidated core OHR improved to 48.5%. This improvement in cost structure is a unique achievement based on the company's own decision-making and directly contributes to improved profitability.
Consolidated assets in custody reached ¥1,008,322 million at the end of March 2026 (up ¥198,206 million from the previous fiscal year-end), of which Shikoku Alliance Securities accounted for ¥487,515 million (up ¥121,567 million from the previous fiscal year-end) and Iyo Bank accounted for ¥520,806 million (up ¥76,638 million from the previous fiscal year-end). The asset management platform formed through collaboration between the bank and securities company serves as a stable foundation for expanding fee income.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), consolidated ordinary income was ¥266,118 million (up 14.8% year on year), ordinary profit was ¥99,206 million (up 32.2% year on year), and profit attributable to owners of parent was ¥74,253 million (up 39.3% year on year), setting new record highs. External factors served as the main drivers: an increase in interest income on fund management due to rising domestic interest rates (up ¥5,283 million year on year), and a substantial increase in other operating income and other ordinary income from the sale of policy-holding shares and foreign government bonds (up a combined ¥27,026 million year on year). Internal factors also contributed to profit growth, including cost reductions from the drop-off of expenses related to the next-generation core banking system (down ¥3,627 million year on year). Profitability indicators also improved significantly, with ROE at 8.83% (up 2.35 percentage points year on year) and earnings per share at ¥253.96 (versus ¥178.08 in the previous fiscal year).
Growth Strategy
Strengthening shareholder returns with a total payout ratio of 50% or more, alongside continued growth in loan balances and assets in custody
As a capital policy under the FY2024 Medium-Term Management Plan, the company has set a target of "total payout ratio of 50% or more by FY2026." The annual dividend for FY2026 (ending March 2026) is ¥60 per share (up ¥15 year on year), with a dividend payout ratio of 23.6%. For FY2027 (ending March 2027), an annual dividend of ¥80 per share (up ¥20 year on year) is planned, and share buybacks totaling ¥17.0 billion were also carried out in FY2025.
The Iyo Bank standalone loan balance achieved its 29th consecutive year of growth, reaching ¥6,164,420 million as of the end of March 2026. Centered on personal loans (including housing loans of ¥925,267 million) and lending to small and medium-sized enterprises, the bank continues to expand community-based lending, aiming for stable growth in net interest income.
Consolidated assets in custody balance expanded to ¥1,008,322 million as of the end of March 2026 (up ¥198,206 million from the previous fiscal year-end). By strengthening sales of investment trusts, insurance, and Japanese government bonds, as well as leveraging Shikoku Alliance Securities' assets in custody (¥487,515 million), the company aims to expand fee income and diversify revenue to reduce reliance on interest income.
With the drop-off of costs related to the construction of the next-generation core banking system, non-personnel expenses for FY2026 (ending March 2026) decreased significantly (Iyo Bank standalone: ¥29,314 million, down ¥5,805 million year on year). A settlement payment of ¥6,000 million related to changes in the plan to advance the core banking system has already been recorded as extraordinary income. The company will continue to improve its cost structure through operational efficiency initiatives.
Last updated: July 19, 2026