Shizuoka Financial Group, Inc.
5831・Prime Market・Banks
Banking
Banking segment centered on deposits, loans, securities investment, and exchange business, forming the core of group earnings
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (external customers) | ¥389,685 million | ¥294,698 million | ↑ |
| Banking segment profit | ¥122,758 million | ¥94,983 million | ↑ |
| Banking segment assets | ¥15,895,905 million | ¥15,595,185 million | ↑ |
| Depreciation (Banking) | ¥11,501 million | ¥11,842 million | ↓ |
| Increase in tangible and intangible fixed assets (Banking) | ¥19,052 million | ¥14,024 million | ↑ |
| Interest on loans (consolidated) | ¥175,468 million | ¥150,072 million | ↑ |
| Shizuoka Bank non-consolidated loan balance (period-end) | ¥11,255,903 million | ¥10,735,073 million | ↑ |
| Shizuoka Bank non-consolidated deposit balance (period-end) | ¥12,434,167 million | ¥11,984,712 million | ↑ |
| Shizuoka Bank non-consolidated core net business profit | ¥112,615 million | ¥91,426 million | ↑ |
| Shizuoka Bank non-consolidated total interest margin | 0.50% | 0.38% | ↑ |
| Shizuoka Bank non-consolidated deposit-loan rate spread | 1.17% | 1.07% | ↑ |
| SFG consolidated capital adequacy ratio (international standard) | 15.60% | 16.29% | ↓ |
Business Details
Centered on Shizuoka Bank, this segment conducts banking operations focused on the Deposit Business, Lending Business, Securities Investment Business, and Exchange Business/Fee-based Services. With Shizuoka Prefecture as its primary base, it fulfills a regional financial function by providing loans to small and medium-sized enterprises and individuals as well as asset management products. In FY2026 (ending March 2026), ordinary income from external customers was ¥389,685 million and segment profit was ¥122,758 million, making it the core segment that accounts for the majority of the group's consolidated ordinary profit of ¥130,298 million. Note that as of July 1, 2025, Shizugin Saison Card Co., Ltd. was made a consolidated subsidiary through additional acquisition and is included in the Banking segment.
Recent Overview
Segment profit rose significantly by ¥27,775 million year-on-year, driven by rising interest rates and increased gains on sales of equities
In FY2026 (ending March 2026), the Banking segment profit was ¥122,758 million (up ¥27,775 million, or +29.2%, year-on-year). Interest on loans expanded to ¥175,468 million (up ¥25,396 million year-on-year), benefiting from rising interest rates. Gains on sales of equities, etc. also increased significantly to ¥61,997 million (up ¥47,265 million year-on-year). On the other hand, losses on sales of government bonds and other bonds expanded to ¥62,964 million (up ¥50,460 million year-on-year), and other operating expenses increased. Shizuoka Bank's non-consolidated core net business profit improved to ¥112,615 million (up ¥21,189 million year-on-year). In addition, Shizugin Saison Card Co., Ltd. was made a consolidated subsidiary in July 2025. On March 27, 2026, a basic agreement was signed toward a business integration with The Bank of Nagoya, Ltd., and discussions are underway regarding making it a wholly owned subsidiary through a share exchange, targeted for around April 1, 2028.
Key Products
Growth Drivers
- Improvement in interest on loans and interest margin due to the Bank of Japan's policy rate hikes (Shizuoka Bank non-consolidated total interest margin of 0.50%, up 0.12pt year-on-year; deposit-loan rate spread of 1.17%, up 0.10pt year-on-year)
- Increase in loan balances to small and medium-sized enterprises and individuals (Shizuoka Bank non-consolidated period-end loan balance of ¥11,255,903 million, up ¥520,830 million year-on-year)
- Expansion of gains on sales of equities, etc. (Shizuoka Bank non-consolidated ¥61,997 million, up ¥47,265 million year-on-year), contributing extraordinary income
- Expansion of fees and commissions income (consolidated ¥94,993 million, up ¥6,543 million year-on-year) and increase in individual entrusted assets (up ¥294.7 billion from the previous fiscal year-end to ¥91,619 billion)
- Business integration with The Bank of Nagoya, Ltd. (targeted for April 2028), expanding scale and gaining a business foundation in Aichi Prefecture, developing into a top-tier regional bank
- Strengthening of group functions through consolidation of Shizugin Saison Card Co., Ltd.
Risks
- Risk of valuation losses/losses on sales of securities (particularly bonds) amid rising interest rates (losses on sales of government bonds and other bonds expanded to ¥62,964 million; SFG consolidated capital adequacy ratio declined 0.69pt year-on-year to 15.60%)
- Downside risk to the Shizuoka Prefecture economy, centered on the automobile industry, due to the impact of U.S. trade policy (tariffs)
- Risk of a drop-off in gains on sales of equities, etc. as policy-held shares are reduced (the significant profit increase this period includes special factors)
- Integration risks related to the business integration with The Bank of Nagoya, Ltd. (due diligence results, determination of share exchange ratio, obtaining regulatory approvals, filing of SEC registration statements, etc.)
- Increase in operating expenses due to investment in human capital and digital investment (Shizuoka Bank non-consolidated expenses of ¥90,830 million, up ¥4,349 million year-on-year)
- Weaker trends in parts of the regional economy, such as the impact of price increases on personal consumption and a decline in housing investment
- Risk of rising credit costs, as shown by the increase in provision for loan losses (consolidated ¥7,947 million, up ¥4,069 million year-on-year)
Last updated: June 12, 2026