Okinawa Financial Group, Inc.
7350・Prime Market・Banks
Business
Okinawa Financial Group, Inc. is a bank holding company established in October 2021 through a sole-share transfer by The Okinawa Bank. Centered on The Okinawa Bank (64 head office and branch locations), the group comprises 11 consolidated subsidiaries, including Okigin Lease, Okigin Securities, Okigin JCB, and Okigin System Solutions. The Banking Business, centered on deposits, lending, and securities investment, accounts for the majority of revenue, and the group functions as a "comprehensive financial services group centered on finance," combining non-bank services such as leasing, credit cards, financial instruments trading, credit guarantees, and consulting. Its primary customer base consists of individuals, corporations, and municipalities within Okinawa Prefecture. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The core of earnings is net interest income (interest on loans and securities) at Bank of Okinawa. For FY2026 (ending March 2026), net interest income is projected at ¥37,800 million, accounting for approximately 94% of consolidated gross operating profit of ¥40,258 million. In addition, fee income from the Fee-based Services Business of ¥5,363 million (fees from securities, cards, guarantees, etc.) is accumulated across group companies. The majority of loans are domestic lending to small and medium-sized enterprises and individuals within the prefecture, resulting in a high degree of correlation with the regional economy.
Company Strengths
Okinawa Bank operates 64 head office and branch locations, boasting loans outstanding to SMEs and others of ¥1,691,719 million and a loan ratio of 83.45%. Loans outstanding, including ¥800,164 million in life-related loans such as housing loans, reached ¥2,027,126 million. The customer base built over many years with individuals, corporations, and municipalities within Okinawa Prefecture is a unique asset that is difficult for competitors to replicate in a short period.
The group holds seven functions in-house—banking, leasing, securities, credit cards, credit guarantees, systems, and consulting—and has already implemented collaborative measures such as bank-securities one-stop inheritance reception and customer toss-up. In FY2026 (ending March 2026), fee-based services income steadily expanded to ¥5,363 million (up ¥1,022 million year on year), realizing a diversified revenue structure not dependent on bank earnings alone.
Starting with Zamami Village, the group has concluded comprehensive collaboration agreements with 10 remote island towns and villages, dispatching a total of 12 seconded staff across the group. The group directly supports the resolution of issues such as business DX, cashless promotion, and migration promotion. The deep relationships with local governments form the basis for transactions such as public fund deposits and policy-based financing, constituting a community-based competitive advantage that other financial institutions cannot easily replicate.
ENVALITH's Perspective
Performance Trend
Ordinary income (equivalent to net sales) grew for five consecutive fiscal years, from ¥50,480 million in FY2022 (ending March 2022) to ¥70,417 million in FY2026 (ending March 2026). In FY2026, growth accelerated with a 19.8% year-on-year increase. Profit attributable to owners of parent reached ¥11,292 million (up 42.2% year on year), a substantial increase in earnings. As an external factor, the rise in the policy interest rate improved the yield on loans and on securities, driving up net interest income (net interest income of ¥37,800 million, up ¥31,498 million year on year), while the low level of credit costs (provision for allowance for doubtful accounts of ¥1,136 million) also boosted profit. Return on equity (net-asset basis) improved to 7.15% (from 5.11% in the previous fiscal year). For FY2027 (ending March 2027), the company forecasts ordinary income of ¥80,000 million (+13.6%), ordinary profit of ¥17,500 million (+10.8%), and profit attributable to owners of parent of ¥12,000 million (+6.3%).
Growth Strategy
The Second Mid-Term Management Plan advances 'Three Group Strategies' concurrently: enhancing regional value, human capital, and growth foundations
Continued expansion of lending to tourism-related industries, real estate, and SMEs within Okinawa Prefecture, achieving a consolidated loan balance of ¥2,011,117 million. Fee-based services revenue also expanded to ¥8,158 million (up ¥1,047 million year on year), on an upward trend. For FY2027 (ending March 2027), the company targets ordinary income of ¥80,000 million, anticipating continued growth in both lending and fee-based services.
The number of employees at The Bank of Okinawa on a standalone basis continued to increase, reaching 1,125 (up 9 from the end of the previous fiscal year). Net operating profit per employee rose significantly to ¥12,209 thousand (up ¥3,865 thousand year on year), reflecting substantially improved productivity, with the effects of human capital investment increasingly being reflected in business performance.
The company is strengthening its systems business through the renaming to Okigin System Solutions (October 2025), deepening bank-securities collaboration with Okigin Securities, and entering new businesses such as the Car Sharing Business. Consolidated net operating profit reached ¥15,262 million (up ¥4,783 million year on year), reflecting the results of building growth foundations in earnings.
The annual dividend for FY2026 (ending March 2026) was ¥170 (an increase of ¥65 from ¥105 in the previous fiscal year), with a dividend payout ratio of 32.9%. For FY2027 (ending March 2027), an annual dividend of ¥200 is planned (¥100 at the second quarter end and ¥100 at fiscal year-end), with the dividend on equity (DOE) ratio expected to reach 36.5%. The continuation of the dividend increase trend is contributing to enhanced shareholder value.
Last updated: July 19, 2026