Mebuki Financial Group,Inc.
7167・Prime Market・Banks
Business
Mebuki Financial Group, Inc. is a bank holding company established in October 2016 through the management integration of Joyo Bank and Ashikaga Bank. With its primary business base in the northern Kanto region centered on Ibaraki, Tochigi, and Gunma prefectures, the Group provides a diverse range of financial and non-financial services through 16 consolidated subsidiaries, centered on Banking Business (deposits, loans, foreign exchange, and trusts), alongside Leasing Business, Securities Business, Credit Guarantee & Credit Card Business, carbon neutrality support, and regional trading company operations. Its main customers are individuals, small and medium-sized enterprises, and public organizations in northern Kanto, and it upholds contribution to the sustainable growth of the regional economy as its management philosophy.
Business Model
The core of earnings is net interest income (¥206,128 million for the current period), generated from the spread between the yield on loans to individuals, corporations, and public entities (period-end balance of ¥13,997,655 million) and the securities portfolio (period-end balance of ¥3,848,221 million) versus deposit funding costs. This is supplemented by net fees and commissions (¥50,638 million for the current period), forming a structure in which group subsidiaries in securities, guarantees, credit cards, and other businesses accumulate fee income.
Company Strengths
Through the integration of Joyo Bank and Ashikaga Bank, the group holds a wide-area network spanning the entire northern Kanto region, centered on Ibaraki, Tochigi, and Gunma prefectures. The loan balance at period-end reached ¥13,997,655 million and deposits reached ¥18,107,938 million, giving the group an overwhelming customer base as a regional financial institution. This scale represents an inherent competitive advantage that is difficult for competing regional banks to replicate in a short period.
The loan balance at the end of the current period increased by ¥794,541 million (up 6.0%) from the previous period to ¥13,997,655 million, with increases across individual, corporate, and public-sector lending. Active risk-taking based on the social issue resolution strategy and business portfolio strategy under the 4th Group Medium-Term Management Plan has supported the continued expansion of the loan balance, and consolidated interest on loans reached ¥167,181 million (up ¥35,937 million year on year).
Cumulative sustainable finance execution has reached ¥2.2 trillion (approximately 74% progress toward the FY2030 target of ¥3 trillion), with diverse financial support provided including business succession, M&A, mezzanine finance, and startup financing. DX support for regional companies through Wing IT Solutions, established in April 2026, has also been added, further diversifying the group's consulting capabilities.
ENVALITH's Perspective
Performance Trend
Ordinary income increased 65% over five periods, from ¥268,090 million in FY2022 to ¥443,313 million in FY2026, with the growth rate in the most recent two periods accelerating (+16.1% in FY2025 → +23.0% in FY2026). As an external factor, the Bank of Japan's interest rate hikes (policy rate of approximately 0.75%) and rising long-term interest rates (around 2.3% at fiscal year-end) pushed interest income on fund management up to ¥290,707 million (up 29.5% year on year). Consolidated gross operating profit was ¥214,151 million (up ¥41,309 million year on year), and consolidated core net business profit was ¥96,208 million (up ¥32,171 million year on year), both showing substantial improvement. On the other hand, increases in funding costs (interest on deposits of ¥37,297 million, up ¥23,507 million year on year) and provision for loan losses (¥10,527 million, up ¥9,659 million year on year) have emerged as challenges on the cost side.
Growth Strategy
The 4th Medium-Term Management Plan (FY2025–FY2027) advances social issue resolution, business diversification, and strengthening of the management foundation
Providing core business support and growth capital supply through constructive dialogue with core companies, and strengthening non-financial services such as introduction of highly specialized talent, utilization of foreign workers, and support for DX promotion. For individual customers, the Bank is promoting expansion of fund wraps, trust products, banking apps, and web-completed loans. Cumulative sustainable finance execution reached ¥2.2 trillion (approximately 74% progress toward the FY2030 target of ¥3 trillion).
Implementing diverse financing support utilizing mezzanine finance such as subordinated loans and LBO loans for startup financing, business succession, M&A, and business restructuring. Through enhanced risk-return management of the securities portfolio, consolidated ROE reached 8.2% (an improvement of 2.3 percentage points year on year).
Building a RAG (Retrieval-Augmented Generation) environment utilizing generative AI to promote operational efficiency and enhanced proposal capabilities. Human capital investment is planned at a cumulative ¥3.0 billion over the plan period, with ¥1.0 billion invested in the current fiscal year for external training, expansion of external trainee programs, expansion of internal side-job programs, raising starting salaries, and base pay increases. In April 2026, Wing IT Solutions Co., Ltd. was established to fully roll out DX support for regional companies.
Dividends are being increased in stages, with an annual dividend of ¥28 for FY2026 (ending March 2026) (payout ratio of 31.4%) and a projected ¥40 for FY2027 (ending March 2027) (projected payout ratio of 39.5%). The Bank has clearly stated its policy of aiming to reach a dividend payout ratio of 40% or more during the 4th Medium-Term Management Plan period (through FY2027). Share buybacks of ¥30,001 million were also conducted in FY2026 (ending March 2026), reinforcing its overall shareholder return stance.
Last updated: July 19, 2026