Daishi Hokuetsu Financial Group, Inc.
7327・Prime Market・Banks
Business
Daishi Hokuetsu Financial Group, Inc. is a holding company established in October 2018 through the business integration of Daishi Bank and Hokuetsu Bank. In January 2021, the two banks merged to form Daishi Hokuetsu Bank, Ltd. The group comprises 15 companies, including 14 consolidated subsidiaries, and centers on Banking, while also providing Leasing Business (Daishi Hokuetsu Lease, etc.), Securities Business (Daishi Hokuetsu Securities), and financial-adjacent services such as Credit Card Business, System-related Business, and Personnel Placement Business. Its main business base is within Niigata Prefecture, but business loans outside the prefecture are also expanding through its Tokyo Head Office. The company is listed on the Prime Market of the Tokyo Stock Exchange. In April 2027, it plans to transition to "Gunma Niigata Financial Group (GNFG)" through a business integration with Gunma Bank.
Business Model
The core bank, Daishi Hokuetsu Bank, is based on the traditional banking model of raising deposits at low cost and earning income through business and consumer loans as well as securities investment. In addition, the Bank is expanding fee income from M&A fees, loan-related fees, over-the-counter sales commissions, and other sources, promoting diversification of non-interest income. Through cross-selling in collaboration with group companies (securities, leasing, credit guarantee, etc.), the Bank leverages the group's overall strength to provide comprehensive financial services that meet customers' diverse needs, including asset management, fund-raising, and business succession.
Company Strengths
The group's total number of customers reached 66,206 (up 3,216 year on year), and the group's assets under custody balance reached ¥1,856.9 billion (up ¥334.1 billion year on year), nearly achieving the medium-term management plan target. Daishi Hokuetsu Bank's standalone assets under custody balance reached ¥1,218,753 million (up ¥187,123 million year on year), with results steadily accumulating through capturing regional asset management needs.
Driven mainly by an increase in M&A fees and loan-related fees, the bank's standalone Fee-based Services Business profit expanded to ¥18,677 million (up ¥3,199 million year on year). Consolidated Fee-based Services Business revenue also increased to ¥40,390 million (up ¥4,300 million year on year), continuing its upward trend, with steady progress being made in diversifying non-interest income.
Centered on the Tokyo Head Office opened in November 2025, structured finance has performed steadily, and the balance of business loans outstanding outside the prefecture reached ¥2,042,900 million (up ¥328,909 million year on year). The average loan balance rose ¥251.4 billion year on year to ¥5,755.6 billion, achieving an expansion of the lending base that goes beyond the scope of a typical regional financial institution.
ENVALITH's Perspective
Performance Trend
Ordinary income grew for five consecutive fiscal periods, from ¥135,711 million in FY2022 (ended March 2022) to ¥260,253 million in FY2026 (ending March 2026), up 33.7% year on year. Profit attributable to owners of parent expanded approximately 2.8-fold, from ¥15,144 million in FY2022 (ended March 2022) to ¥42,103 million in FY2026 (ending March 2026). The main drivers of the profit increase in FY2026 (ending March 2026) were, on the market environment side, an expansion in interest on loans (up ¥14,737 million year on year) and interest and dividends on securities (up ¥6,494 million year on year) due to rising domestic interest rates, together with a significant increase in gains on sales of stocks and other securities (up ¥35,475 million year on year), which served as the main pillars. On the other hand, a sharp increase in interest on deposits (up ¥10,579 million year on year), an expansion in losses on sales of government bonds and other bonds (up ¥27,274 million year on year), and an increase in provision for allowance for doubtful accounts (up ¥4,492 million year on year) were factors that pushed down results on the expense side. Comprehensive income improved substantially to ¥103,852 million (compared with ¥-11,612 million in the previous period), and the shift of net unrealized gains (losses) on other securities from a valuation loss in the previous period to a valuation gain contributed to the expansion of net assets (up ¥90,581 million from the end of the previous period).
Growth Strategy
Aiming for net income of ¥50,000 million in the final year of the Third Medium-Term Management Plan through integration with Gunma Bank, capitalizing on the interest rate environment, and strengthening consulting
On March 26, 2026, the company concluded a share exchange agreement and business integration agreement. With April 1, 2027 set as the scheduled integration date, a share exchange (ratio 1:1.125) will be implemented under which the company becomes the wholly owning parent company and Gunma Bank becomes a wholly owned subsidiary. Following the integration, the company will change its trade name to "Gunma Niigata Financial Group, Inc." and form a new top-tier regional bank financial group with a base in both Niigata and Gunma prefectures. The aim is to pursue rationalization and efficiency through economies of scale and to enhance consulting functions.
Against the backdrop of the Bank of Japan's normalization of monetary policy, improvements are underway in the loan yield (1.21%, up 0.22 percentage points year on year) and securities yield (2.02%, up 0.44 percentage points year on year). The company will continue to improve its portfolio through the sale of low-yield bonds and expand earnings in the market investment division. The policy is to enhance profitability while simultaneously accumulating risk assets due to the transition to the Foundation Internal Ratings-Based approach and improving the capital adequacy ratio (consolidated domestic standard: 12.07%).
Through the expansion of structured finance centered on the Tokyo Head Office, the balance of business loans outside the home prefecture maintained high growth, reaching ¥2,042,900 million (up 16.2% from the end of the previous fiscal year). Fee-based services income also expanded due to increases in M&A fees and loan-related fees. The bank's standalone assets under custody reached ¥1,218,753 million (up ¥187,123 million from the end of the previous fiscal year), with continued strengthening of sales of investment trusts, insurance, and other products. The company is also promoting expansion of housing loans and unsecured loans in parallel through the use of non-face-to-face channels and enhancement of the product lineup.
Net income attributable to owners of the parent for FY2026 (ended March 2026) of ¥42,103 million significantly exceeded the revised figure announced in September 2025 (¥36,000 million), and also exceeded the initially announced figure (¥33,000 million) by +27.5%. For FY2027 (ending March 2027), the company forecasts ordinary profit of ¥73,600 million and net income attributable to owners of the parent of ¥50,000 million, aiming to achieve the final-year targets of the medium-term plan. The preconditions for achievement are the continued elevated level of domestic market interest rates, improvement of the securities portfolio, and the practice of group-wide integrated consulting-based sales.
Last updated: July 19, 2026