Tokyo Kiraboshi Financial Group, Inc.
7173・Prime Market・Banks
Business
A holding-company-type financial group whose primary business area is Tokyo and the northeastern part of Kanagawa Prefecture. Centered on the two-bank structure of its core bank, Kiraboshi Bank (formed through the merger of the former Tokyo Tomin Bank, Yachiyo Bank, and Shinginko Tokyo), and UI Bank, a digital bank that launched in January 2022, the group comprises 20 consolidated subsidiaries and 3 affiliated companies engaged in leasing, securities, consulting, fintech, and other businesses. Its primary customers are small and medium-sized enterprises and individuals (particularly seniors and the wealthy) in the greater Tokyo metropolitan area. Under its future vision of becoming a "comprehensive service business that is also strong in finance," the group is promoting a shift toward a problem-solving business model leveraging its overall group strength.
Business Model
Net interest income (interest on loans and securities) accounts for the bulk of revenue, with interest income on fund management reaching ¥113,347 million in FY2026 (ending March 2026). In addition, the company is expanding fee businesses such as fee and commission income of ¥28,826 million (up more than ¥4.5 billion year on year), trust fees, brokerage commissions, and fund income. With Kiraboshi Bank acting as coordinator, the group is providing integrated solutions that combine the functions of various group companies (securities, capital, consulting, etc.), advancing a shift toward an "asset turnover-type" model that builds up fee income without increasing assets.
Company Strengths
Based in Tokyo and northeastern Kanagawa Prefecture, the company has Kiraboshi Bank's branch network and a 13-branch office system (completed August 2025). Loan balances stood at ¥5,277,513 million (up ¥297,300 million from the previous fiscal year-end), and deposit balances at ¥6,185,446 million, boasting one of the largest scales among regional banks in the greater Tokyo area. The deep relationships with SME and individual customers accumulated through years of dealings constitute a unique asset that competitors cannot easily replicate in a short period.
UI Bank, launched in January 2022, has rapidly expanded its loan balance to ¥268.6 billion and deposit balance to ¥805,988 million, achieving profitability in FY2026 (ending March 2026). Leveraging its BaaS platform, it has successively rolled out externally-linked services such as "CQ BANK" with Kansai Electric Power and "KYODAI Bank" for foreign residents, cultivating customer segments and revenue sources that existing banks cannot capture. In July 2025, it also began offering corporate deposit services, advancing diversification of its funding base.
Kiraboshi Life Design Securities' assets under custody rapidly expanded to ¥475,494 million (up ¥185,424 million from the previous fiscal year), and trust assets reached ¥179,201 million (up ¥33,684 million from the previous fiscal year). Fund income has also grown through fund exits by Kiraboshi Capital, along with consolidation of entities such as KCP Equity Assist No.1, advancing a comprehensive solution framework combining lending, equity investment, securities, trust, and consulting services—a differentiating factor versus other regional financial institutions.
ENVALITH's Perspective
Performance Trend
Consolidated recurring revenue for FY2026 (ending March 2026) was ¥199,262 million (up 23.8% year on year), recurring profit was ¥60,478 million (up 45.1%), and profit attributable to owners of parent was ¥42,357 million (up 35.0%), with all metrics reaching record highs. As an external factor, the policy interest rate hike pushed up the loan interest yield (1.47% → 1.70%), resulting in a substantial increase in interest on loans to ¥86,061 million (up ¥14,572 million year on year). Meanwhile, interest on deposits also rose sharply to ¥21,670 million (up ¥14,926 million year on year). Gains and losses related to stocks, etc. of ¥26,144 million (up ¥16,141 million year on year) also contributed significantly. Comprehensive income expanded sharply to ¥57,552 million (up 398.6% year on year), and net assets increased to ¥423,440 million (up ¥52,124 million from the end of the previous fiscal year). For FY2027 (ending March 2027), recurring profit is forecast at ¥58,600 million (down 3.1% year on year) and net profit at ¥40,000 million (down 5.5%), a projected decline in profit mainly attributable to the falloff in gains and losses related to stocks, etc. and rising funding costs.
Growth Strategy
Advancing the medium-term management plan through three pillars — strengthening earnings power, improving efficiency, and enhancing capital adequacy — while also implementing a renewal of capital policy
Through deepening main bank relationships with small and medium-sized enterprises and strengthening client relations, Kiraboshi Bank's loan balance expanded to ¥5,014,524 million (up ¥61,507 million from the previous fiscal year-end). The loan yield also rose to 1.70% (up 0.22 percentage points year on year), and profit from customer services business reached ¥27.0 billion (up ¥1.0 billion year on year).
UI Bank achieved a turnaround to profitability in FY2026 (ending March 2026), posting ordinary profit of ¥133 million. Loan balances expanded to ¥268.6 billion following the launch of housing loans and investment real estate loans, and the deposit base diversified with the start of corporate deposit services (July 2025). The company will continue improving earnings through fee income from increased loan execution, accumulation of loan interest income, and acquisition of sticky ordinary deposits.
Group company profit (excluding Kiraboshi Bank) reached ¥3.42 billion (up ¥1.95 billion year on year), exceeding the annual plan of ¥3.0 billion. The digital business turned profitable, and assets under custody at Kiraboshi Life Design Securities expanded rapidly to ¥475,494 million (up ¥185,424 million year on year). The Group aims to further realize synergies by providing integrated solutions through collaboration among group companies.
At the Board of Directors meeting on May 8, 2026, resolutions were passed to convert the No. 1 Class 1 Preferred Shares (held by Sumitomo Mitsui Trust Bank) into common shares (5,498,532 shares) and to acquire and retire the Class 2 Preferred Shares for cash consideration. A stock split at a ratio of 8 shares for every 1 common share is also planned. This will eliminate the capital structure associated with the ¥55,000 million preferred share paid-in amount, strengthening returns to common shareholders and improving share liquidity.
In fiscal year 2025, the company utilized hedge operation gains/losses and gains on sale of equities to sell bonds with maturities exceeding 10 years, reducing the balance of such maturities to zero. The duration of yen-denominated bonds was shortened to 2.1 years (from 3.4 years in the previous fiscal year), and interest rate sensitivity (for a 10bp rise) was contained to negative ¥0.5 billion for yen bonds and negative ¥0.3 billion for foreign bonds. In fiscal year 2026, the company plans to continue managing the portfolio with a focus on short-term bonds while securing capacity for long-term bond investment once the interest rate hiking phase concludes.
Last updated: July 19, 2026