Nishi-Nippon Financial Holdings, Inc.
7189・Prime Market・Banks
Banking
Core segment comprising Nishi-Nippon City Bank and The Bank of Nagasaki, accounting for the large majority of Group revenue.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (external customers) | ¥221,971 million | ¥172,055 million | ↑ |
| Banking segment profit (ordinary income basis) | ¥52,037 million | ¥39,460 million | ↑ |
| Banking segment assets | ¥13,795,669 million | ¥13,529,394 million | ↑ |
| Banking segment liabilities | ¥13,204,898 million | No corresponding data | ↑ |
| Depreciation (Banking) | ¥6,362 million | ¥6,014 million | ↑ |
| Increase in tangible and intangible fixed assets (Banking) | ¥39,737 million | ¥6,678 million | ↑ |
| Combined loan balance (two banks) | ¥10,289,537 million | ¥9,971,708 million | ↑ |
| Combined deposit and negotiable certificate of deposit balance (two banks) | ¥10,975,483 million | ¥10,533,153 million | ↑ |
| Combined overall interest margin (two banks) | 0.53% | 0.36% | ↑ |
| Combined non-performing loan ratio (two banks) | 1.49% | 1.49% | — |
| NCB (non-consolidated) ordinary profit | ¥51,226 million | ¥38,948 million | ↑ |
| NCB (non-consolidated) net income | ¥35,437 million | ¥27,042 million | ↑ |
| The Bank of Nagasaki (non-consolidated) ordinary profit | ¥812 million | ¥513 million | ↑ |
| Nishi-Nippon Financial Holdings consolidated capital adequacy ratio (domestic standard) | 11.44% | 12.59% | ↓ |
Business Details
A reportable segment comprising The Nishi-Nippon City Bank, Ltd. and The Bank of Nagasaki, Ltd. Centered on Kyushu and Fukuoka as its main service area, it provides a diverse range of financial services including Deposit Business, Lending Business, Securities Investment Business, domestic and foreign exchange operations, and over-the-counter sales of investment trusts and insurance products. This segment accounts for the large majority of the Group's ordinary income and is the core business driving consolidated performance. For FY2026 (ending March 2026), ordinary income from external customers was ¥221,971 million, and segment profit was ¥52,037 million.
Recent Overview
Banking segment profit increased 32% year on year to ¥52,037 million, driven by a substantial expansion in net interest income.
In FY2026 (ending March 2026), the Banking segment's revenue was driven by an increase in interest on loans against the backdrop of policy interest rate hikes (combined net interest income of the two banks increased ¥27,388 million from the previous period to ¥130,233 million). Core net business profit at NCB (non-consolidated) improved substantially to ¥63,358 million (up ¥22,746 million from the previous period). On the other hand, losses on JGBs and other bonds widened to ¥(26,419) million. The increase in tangible fixed assets rose substantially to ¥39,737 million from the previous period, reflecting progress in capital investment such as at the head office. The capital adequacy ratio (domestic standard) declined to 11.44% (down 1.15 points from the same period of the previous year) due to an increase in risk assets.
Key Products
Growth Drivers
- Expansion of net interest income driven by increases in interest on loans and interest on deposits with banks, against the backdrop of the Bank of Japan's phased policy rate hikes (combined loan yield of the two banks was 1.23%, up 0.26 points from the previous period)
- Expansion of corporate loan demand accompanying increased capital investment in the Kyushu/Fukuoka region (combined loan balance of the two banks increased ¥317,829 million year on year)
- Continued growth in the balance of personal loans, centered on housing loans and consumer loans (combined balance of the two banks increased ¥167,240 million year on year to ¥3,616,780 million)
- Expansion of assets in custody balances such as investment trusts and insurance products (combined Group balance increased ¥269,490 million year on year to ¥1,674,651 million, +19.2% from the previous period)
- Increase in net gains related to equities, etc. (¥20,912 million on a consolidated basis, up ¥8,810 million from the previous period), improving extraordinary gains and losses
- Improvement in profitability due to an improved overall interest margin (0.53% combined for the two banks, up 0.17 points from the previous period)
Risks
- Risk of valuation losses on securities arising from sharp fluctuations in domestic long-term interest rates (NCB non-consolidated bond valuation losses were ¥77,848 million) and deterioration in gains/losses on JGBs and other bonds (¥(26,419) million on a consolidated basis)
- Long-term decline in economic activity and loan demand in the home market of Kyushu/Fukuoka due to population decline and aging
- Risk of rising credit costs due to an increase in doubtful receivables (¥97,924 million combined for the two banks, up ¥7,213 million from the end of the same period of the previous year; credit costs of ¥7,535 million on a consolidated basis)
- Rising funding costs due to a sharp increase in interest paid on deposits (consolidated interest on deposits was ¥21,249 million, up ¥14,640 million from the previous period)
- Reduction in the risk buffer due to a decline in the capital adequacy ratio (11.44% for Nishi-Nippon Financial Holdings consolidated, down 1.15 points from the end of the same period of the previous year)
- Risk of erosion of the revenue base due to accelerating digitalization and intensifying competition with fintech companies
Last updated: June 19, 2026