Hirogin Holdings, Inc.
7337・Prime Market・Banks
Business
Hirogin Holdings, Inc. is a bank holding company established in October 2020 through a sole-share transfer by Hiroshima Bank. Centered on Hiroshima Bank, the group comprises 24 subsidiaries and 4 affiliated companies, including Hirogin Securities (Financial Instruments Business), Hirogin Lease (Leasing), Hirogin Credit Service (Credit Guarantee & Credit Card Business), and Hirogin Capital Partners (Investment & Consulting). With Hiroshima Prefecture as its core market alongside the three neighboring prefectures of Okayama, Yamaguchi, and Ehime, the group positions itself as a comprehensive regional service group, providing individual and corporate customers with a wide range of financial and non-financial services spanning deposits, lending, asset management, M&A support, and regional development businesses.
Business Model
The core of earnings is Hiroshima Bank's net interest income (¥104,237 million in FY2026 (ending March 2026)), with the spread between yields on loans and securities and funding costs serving as the primary revenue source. In addition, group companies such as Hirogin Securities and Hirogin Credit Service accumulate fee and commission income (¥41,372 million on a consolidated basis). Through a one-stop group collaboration model in which the bank provides the customer base while group companies offer specialized services such as securities, guarantees, leasing, and investment, the group aims to diversify fee income and enhance earnings stability.
Company Strengths
Hiroshima Bank's standalone business loan balance reached ¥529.1 billion (up ¥50.3 billion from the previous fiscal year-end, +10.5% annualized), while consolidated loan balance stood at ¥8,193,073 million. Deep penetration into local industries such as real estate, manufacturing, and transportation, combined with long-cultivated expertise in ship finance, has formed a customer base that is difficult for competitors to replicate in a short period.
Banking, securities, leasing, credit guarantee, capital, area design, and Regional Advisers (newly established in April 2026) collaborate to build a system capable of consistently handling everything from financing and equity to REIT inclusion and private funds. Hirogin Securities' assets under custody reached ¥1,190.0 billion (up ¥204.7 billion from the previous fiscal year-end), and Hirogin Credit Service's guarantee balance reached ¥1,170.0 billion (up ¥76.7 billion from the previous fiscal year-end), with each company building up a solid track record.
The core OHR (operating expense ratio) improved for three consecutive years, from 57.7% to 54.0% to 49.3%, and the consolidated operating expense ratio for FY2026 (ending March 2026) reached 49.7% (down 4.2 percentage points year on year). This improvement was achieved by absorbing active investment in human capital and DX through top-line growth, with consolidated ROE reaching 8.2% (up 1.3 percentage points year on year) and consolidated PBR improving to near 1x.
ENVALITH's Perspective
Performance Trend
Ordinary income (equivalent to revenue) increased 71.9% over five periods, from ¥146,085 million in FY2022 (ending March 2022) to ¥251,214 million in FY2026 (ending March 2026), with the most recent period's growth rate (+24.8%) the highest of the past four periods. The main external factors were the improvement in loan yield (all branches: 1.27%, up 0.17 percentage points year on year) accompanying the Bank of Japan's normalization of monetary policy, and the sharp increase in interest and dividends on securities (¥38,970 million, up ¥10,295 million year on year). Profit attributable to owners of parent was ¥43,734 million (up 22.0% year on year), marking a record high for the second consecutive year. Consolidated ROE improved to 8.2% (from 6.9% in the previous year), and net assets per share improved to ¥1,904.72 (from ¥1,679.10 in the previous year). For FY2027 (ending March 2027), the company forecasts ordinary profit of ¥74,500 million (+20.1%) and net income of ¥51,000 million (+16.6%), which would mark a record high profit for the third consecutive year.
Growth Strategy
In the revised Medium-Term Plan 2024, the company aims for FY2028 (ending March 2028) net income of ¥70.0 billion and ROE of 11% or more, pursuing growth through an integrated approach of lending, investment, and non-financial businesses
Continuing risk-asset control by selectively building up loans to local SMEs, ship finance, and high-yield loans outside the local area, while reducing low-profitability loans to the government sector. FY2025 (ending March 2025) results showed 7.4% annual growth, exceeding the plan (approximately 6%), leading to an upward revision of the FY2028 (ending March 2028) target for average business loan balances to approximately ¥6 trillion (up from approximately ¥5.5 trillion before the revision). The plan also leverages expanded risk-taking capacity from senior bond issuance (bank capital increase).
Continuing to sell low-yield bonds and replace them with high-yield assets (corporate bonds, foreign bonds, investment trusts, etc.), with a plan to raise the securities yield, net of external funding costs, to approximately 1.7% (up from approximately 1.1% before the revision) by FY2028 (ending March 2028). FY2025 (ending March 2025) results achieved 1.00% (up 0.33 percentage points year on year), already surpassing the initial Medium-Term Plan target (balance of ¥2 trillion, yield of 1% or more) ahead of schedule. The FY2026 (ending March 2026) plan envisions a yield of approximately 1.16% and net interest income of ¥25.0 billion.
Expanding Hirogin Securities' assets under custody to ¥1,190.0 billion (up ¥204.7 billion from the end of the previous fiscal year), increasing fee income from investment trusts, insurance, and financial instrument intermediary services. Newly launching a private fund formation and management business through Hirogin Regional Advisors (established April 2026), and promoting a "community development" business that combines real estate finance with non-financial consulting. Hirogin Credit Service's guarantee balance is expanding to ¥1,170.0 billion (up ¥76.7 billion from the end of the previous fiscal year).
Continuing to implement human capital investment (+¥2.3 billion), including personnel system reforms, performance-linked bonuses, and base pay increases, as well as DX and IT-related investment (+¥1.0 billion). Top-line growth improved the core OHR to 49.3% (from 54.0% in the previous fiscal year), achieving both growth investment and improved profitability simultaneously. For FY2026 (ending March 2026), the plan envisions a further increase in expenses of ¥4.5 billion, while maintaining the improving trend in core OHR through expansion of core gross business profit.
Increasing the dividend per share from ¥58 in FY2025 (ending March 2025) to ¥70 in FY2026 (ending March 2026), maintaining a dividend payout ratio of 40.5%. In May 2026, resolved to conduct a share buyback of up to 6,000,000 shares and ¥7.0 billion, achieving a total return ratio of 54.5% (FY2026 (ending March 2026) plan). The basic policy is to steadily and sustainably increase dividend per share through profit growth, with a target of ¥94 dividend per share (after the Medium-Term Plan revision) by FY2028 (ending March 2028).
Last updated: July 19, 2026