Kyoto Financial Group, Inc.
5844・Prime Market・Banks
Business
Kyoto Financial Group, Inc. is a bank holding company established in October 2023 through a sole-share transfer by The Bank of Kyoto. It comprises 12 consolidated subsidiaries and 1 equity-method affiliate, and provides financial services including leasing, credit cards, financial instruments trading, and M&A Advisory Business, centered on banking operations. Its business area extends beyond the two prefectures and three prefectures of the Kinki region to Aichi and Tokyo, with individuals, corporations, and local governments as its main customers. As of the end of March 2026, it is a wide-area regional bank group with total assets of ¥11,825.6 billion, loans outstanding of ¥7,590.9 billion, and deposits outstanding of ¥9,575.0 billion.
Business Model
The core of funding is deposits from individuals and corporations (¥9,575,000 million...
Company Strengths
Fee business profit reached ¥20,750 million in FY2026 (ending March 2026), an increase of ¥2,318 million year on year, marking a record high for the sixth consecutive year. This was driven by expansion in corporate transaction-related fees such as syndicated loans and M&A, an increase in investment trust and insurance sales business revenue (¥5,521 million), and growth in Group assets under custody balance to ¥1,199.3 billion (up ¥241.4 billion from the previous fiscal year-end), reflecting the depth of the company's own sales capability and customer base.
As of the end of March 2026, the company held unrealized gains on equity holdings of ¥846,720 million, and the consolidated capital adequacy ratio (domestic standard) stood at 12.18%, well above regulatory requirements. Consolidated capital reached ¥528.5 billion, underscoring the robustness of its financial base. Despite ongoing reductions in cross-shareholdings, the company has maintained a high level of unrealized gains, which serves as a source of funds for improving capital efficiency and shareholder returns.
Since its founding in 1941, the company has provided over 80 years of continuous hands-on support to regional businesses, building a corporate customer base spanning diverse industries including manufacturing (loan balance of ¥1,407,653 million), real estate (¥1,258,596 million), and wholesale and retail (¥754,517 million). Leveraging the specialized functions of Group companies, including Kyoto M&A Advisory Co., Ltd., established in July 2025, the company possesses region-focused relationships that are difficult for competitors to replicate in a short period.
ENVALITH's Perspective
Performance Trend
Ordinary revenue was ¥366,704 million (up 119.2% YoY), ordinary profit was ¥137,182 million (up 169.4% YoY), and profit attributable to owners of parent was ¥96,723 million (up 164.6% YoY), renewing record-high profits for the second consecutive period. As an external factor, gains and losses related to stocks, etc. of ¥176,642 million, including gains on the sale of policy-holding shares (such as Nintendo shares), significantly boosted revenue. On the other hand, losses on sales of government bonds and other securities of ¥91,108 million were also recorded to improve the yen bond portfolio. Core net business profit (consolidated), which indicates core earnings power, expanded steadily to ¥51,282 million (up ¥3,367 million from the previous period). Net assets per share rose to ¥3,999.20 (from ¥3,734.10 in the previous period). For FY2027 (ending March 2027), ordinary profit is forecast at ¥76,600 million and net income at ¥52,000 million, representing a significant decline in profit; however, excluding the drop-off of the gain on sale of Nintendo shares, this is considered to be equivalent to a substantial increase in profit.
Growth Strategy
Three pillars: revitalization of the regional economy, strengthening of the group structure, and reduction of policy-holding shares combined with enhanced shareholder returns
Continued expansion of loan balances centered on corporate lending (¥7,652.7 billion as of end-March 2026). Diversified fee income through syndicated loans, M&A, investment trusts, and other sources, achieving a sixth consecutive year of record-high fee business profit. The policy for FY2027 (ending March 2027) is to continue increasing loan balances and expanding fee income.
Actively promoted the sale of policy-holding shares, recording gains related to stocks of ¥176,642 million in FY2026 (ending March 2026). At the same time, advanced portfolio soundness by processing unrealized losses on yen-denominated bonds (losses on sales of bonds such as government bonds of ¥91,108 million). Securities balances were reduced to ¥2,650,960 million (down ¥653,902 million year on year).
Newly consolidated Kyoto M&A Advisory Co., Ltd. to expand the group's earnings base. The annual dividend for FY2026 (ending March 2026) was ¥180 (including a special dividend of ¥100), with a payout ratio of 53.1%. For FY2027 (ending March 2027), an ordinary dividend of ¥105 is planned (an increase of ¥25 from the previous year's ordinary dividend of ¥80), clearly indicating a policy of continued dividend increases. Share buybacks of ¥14,975 million were also carried out.
Last updated: July 19, 2026