Jimoto Holdings,Inc.
7161・Standard Market・Banks
Banking
A regionally focused banking segment centered on Kirayaka Bank and Sendai Bank, serving Miyagi and Yamagata Prefectures
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (external customers) | ¥37,371 million | ¥31,572 million | ↑ |
| Banking segment profit (ordinary profit) | ¥2,855 million | ¥1,698 million | ↑ |
| Segment assets | ¥2,469,753 million | ¥2,464,810 million | ↑ |
| Depreciation expense | ¥1,443 million | ¥1,555 million | ↓ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥727 million | ¥478 million | ↑ |
| Interest income (Banking segment) | ¥30,250 million | ¥24,899 million | ↑ |
| Interest expense (Banking segment) | ¥5,322 million | ¥1,775 million | ↑ |
| Combined loan balance (two banks, period-end) | ¥1,944,192 million | ¥1,925,733 million | ↑ |
| Combined deposit balance including NCDs (two banks, period-end) | ¥2,288,038 million | ¥2,285,609 million | ↑ |
| Combined core net business profit (two banks) | ¥5,430 million | ¥4,667 million | ↑ |
| Combined credit-related expenses (two banks) | ¥2,274 million | ¥2,113 million | ↑ |
| Consolidated disclosed problem asset ratio under the Financial Reconstruction Act | 4.65% | 4.62% | ↑ |
Business Details
Centered on Kirayaka Bank, Ltd. (Yamagata Prefecture) and The Sendai Bank, Ltd. (Miyagi Prefecture). The segment conducts deposit-taking, lending, exchange, securities investment, and over-the-counter sales (public bonds, investment trusts, insurance), primarily targeting small and medium-sized enterprises (SMEs) and individual customers in Miyagi and Yamagata Prefectures. This is the core segment of the Group, accounting for approximately 84.8% of consolidated ordinary income. The Group is advancing management turnaround and deepening SME support by leveraging its capital and business alliance with the SBI Group.
Recent Overview
Segment profit rose sharply, up 68.1% year on year, driven by expanded interest income amid rising interest rates
Against the backdrop of the Bank of Japan's policy rate hikes, interest income on loans increased significantly (combined interest income of the two banks: from ¥23,115 million in the prior period to ¥24,922 million in the current period), driving a substantial improvement in Banking segment profit to ¥2,855 million (from ¥1,698 million in the prior period). On the other hand, deposit interest expense also rose sharply (from ¥1,448 million to ¥4,468 million), pushing up funding costs. Kirayaka Bank's problem asset ratio remained high at 5.94%. Unrealized losses on securities continued at a large consolidated total of ¥(29,061) million, and the Group is working with the SBI Group to resolve these over the medium to long term. For FY2027 (ending March 2027), the Group forecasts ordinary profit of ¥2,200 million for Kirayaka Bank and ¥1,500 million for Sendai Bank.
Key Products
Growth Drivers
- Expansion of interest income through improved loan yields amid rising interest rates (combined yield of two banks at 1.44%, up 0.20 points year on year)
- Expansion of consumer loans and SME lending at Sendai Bank (loan balance up ¥29,557 million from the prior year-end)
- Support for fee income from the expansion of assets under custody (combined balance of two banks at ¥206,453 million, up ¥16,261 million from the prior year-end)
- Deepening of new financial service offerings, management efficiency, and SME support through cooperation with the SBI Group
- Stabilization of the funding base through growth in individual and corporate deposits (individual deposits up ¥20,895 million from the prior year-end)
- Reversal of allowance for doubtful accounts and improvement in credit costs (consolidated allowance for doubtful accounts balance: from ¥32,437 million in the prior period to ¥28,799 million in the current period)
Risks
- Continued high non-performing loan ratio at Kirayaka Bank (5.94%) and ongoing credit-related expenses (non-consolidated ¥1,149 million)
- Repayment burden of public funds (Class B, C, D, and E preferred shares, total issuance amount of ¥78,000 million) and the need to build up retained earnings
- Large unrealized losses in the securities portfolio (consolidated total of ¥(29,061) million: ¥(23,595) million on other securities and ¥(5,465) million on held-to-maturity securities)
- Risk of margin compression due to a sharp increase in funding costs amid rising interest rates (combined funding costs of two banks: from ¥1,869 million in the prior period to ¥5,447 million in the current period)
- Still-thin earnings structure, with a combined total interest margin of only 0.09% for the two banks
- Medium- to long-term contraction of the business base due to population decline and shrinking regional economies in the operating area (Miyagi and Yamagata)
- Kirayaka Bank's ordinary profit forecast for the six months ending September 2026 is expected to decline sharply by 34.7% year on year to ¥700 million
Last updated: June 18, 2026