Tokyo Kiraboshi Financial Group, Inc.
7173・Prime Market・Banks
Banking
The Banking segment (Kiraboshi Bank and UI Bank), the core of group revenue
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income (Banking segment, external customers) | ¥162,069 million | ¥130,528 million | ↑ |
| Segment profit (ordinary profit basis) | ¥57,540 million | ¥39,663 million | ↑ |
| Segment assets | ¥7,265,768 million | ¥7,049,328 million | ↑ |
| Interest income (Banking segment) | ¥117,393 million | ¥96,739 million | ↑ |
| Interest expenses (Banking segment) | ¥25,764 million | ¥9,868 million | ↑ |
| Depreciation (Banking segment) | ¥6,839 million | ¥6,765 million | ↑ |
| Kiraboshi Bank (non-consolidated) loan balance (period-end) | ¥5,014,524 million | ¥4,953,017 million | ↑ |
| Kiraboshi Bank (non-consolidated) loan yield | 1.70% | 1.47% | ↑ |
| Kiraboshi Bank (non-consolidated) overall interest margin | 0.46% | 0.44% | ↑ |
| Kiraboshi Bank (non-consolidated) core net business profit | ¥46,332 million | ¥39,916 million | ↑ |
| Kiraboshi Bank (non-consolidated) core OHR | 55.20% | 57.93% | ↓ |
| Kiraboshi Bank (non-consolidated) ratio of disclosed claims under the Financial Reconstruction Act (after partial direct write-off) | 1.57% | 1.68% | ↓ |
Business Details
This segment is centered on Kiraboshi Bank (with a main operating area of Tokyo and northeastern Kanagawa Prefecture, comprising 156 head office/branch locations and 7 sub-branches) and the digital bank UI Bank. It conducts core banking operations such as deposits, lending, securities investment, foreign exchange, and trust business, while two consolidated subsidiaries handle credit guarantee operations. UI Bank provides deposit, lending, and domestic exchange services via its app, aiming to integrate face-to-face and non-face-to-face services. This segment is the core business, accounting for approximately 81% of the group's consolidated ordinary income (¥199,262 million).
Recent Overview
Banking segment profit rose more than 45% due to higher loan yields and increased gains on stock sales
Banking segment profit for FY2026 (ending March 2026) was ¥57,540 million (up ¥17,877 million, +45.1% year on year). Kiraboshi Bank's non-consolidated ordinary profit was ¥56,576 million (up ¥16,334 million year on year). Interest on loans increased by ¥12,600 million (+17.6%) year on year, and gains/losses related to stocks increased substantially to ¥21,850 million (up ¥11,928 million year on year). Meanwhile, interest expenses surged to ¥25,764 million (up ¥15,896 million year on year). UI Bank achieved its first profitable turnaround with ordinary profit of ¥133 million. Kiraboshi Bank's capital adequacy ratio (domestic standard) was 9.10% (down 0.01 percentage points from the prior period).
Key Products
Growth Drivers
- Rise in loan yield (up 0.22 percentage points to 1.70% year on year) against a backdrop of policy interest rate increases, and widening of the deposit-loan interest rate spread (1.41%)
- Increase in loan balance through promotion of main-bank relationships and relationship strengthening (up ¥61,507 million from the prior fiscal year-end on a Kiraboshi Bank non-consolidated basis)
- Rise in securities yield (from 2.40% to 2.91%) due to increased fund income (+¥2.9 billion) and other factors
- Expansion of the funding base through UI Bank's growth in mortgage and investment property loans (loan balance of ¥268.6 billion) and increased deposit balance (¥805,988 million)
- Increase in gains from sales of pure investment and strategic holding stocks (gains/losses related to stocks of ¥21,850 million, up ¥11,928 million year on year)
- Increase in trust fees due to expansion of trust assets balance (¥179,201 million, up ¥33,684 million year on year)
Risks
- Risk of margin compression due to a sharp rise in interest expenses (from ¥9,868 million in the prior period to ¥25,764 million in the current period in the Banking segment)
- Concentration of credit risk in the event of a real estate market downturn, given that real estate industry loans account for 28.60% of total loans
- Remaining valuation losses on securities (¥-19.7 billion after considering hedges), posing a risk of additional losses from interest rate fluctuations
- Expenses increased by ¥2.1 billion year on year due to higher personnel expenses from base pay increases and higher non-personnel expenses such as outsourcing costs
- Credit-related expenses increased by ¥900 million year on year (to ¥3.8 billion) due to deteriorating creditworthiness of some large borrowers
- Concerns over deteriorating business performance among SME clients due to the Trump administration's tariff policy and geopolitical risks
Last updated: June 15, 2026