Juroku Financial Group, Inc.
7380・Prime Market・Banks
Banking
The core segment of Juroku Financial Group, forming the mainstay of regional financial services based in Gifu and Aichi prefectures.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment ordinary revenue (external customers) | ¥133,426 million | ¥99,853 million | ↑ |
| Segment profit (ordinary income) | ¥40,185 million | ¥28,837 million | ↑ |
| Segment assets | ¥7,445,856 million | ¥7,524,044 million | ↓ |
| Depreciation and amortization | ¥3,247 million | ¥2,824 million | ↑ |
| Increase in tangible and intangible fixed assets | ¥4,277 million | ¥3,889 million | ↑ |
| Core net business profit (Juroku Bank, standalone) | ¥35,808 million | ¥28,423 million | ↑ |
| Loan balance at period-end (Juroku Bank, standalone) | ¥5,115,887 million | ¥5,032,760 million | ↑ |
| Deposit-loan interest margin (Juroku Bank, standalone) | 0.25% | 0.20% | ↑ |
| Adjusted OHR (Juroku Bank, standalone) | 53.35% | 57.28% | ↓ |
| Total non-performing loans / ratio to total credit (Juroku FG, consolidated) | ¥65,040 million / 1.24% | ¥60,868 million / 1.17% | ↑ |
Business Details
Through its branches and offices, Juroku Bank, Ltd. conducts a full range of banking operations, including deposits, lending, securities investment, domestic and foreign exchange, and derivative transactions. A consolidated subsidiary engages in the Credit Guarantee Business, complementing the Banking segment. With Gifu and Aichi prefectures as its primary operating base, the segment serves as the core business of comprehensive regional financial services, providing a diverse range of financial products and services to individual and corporate customers in the region. In FY2026 (ending March 2026), segment ordinary revenue (external customers) rose sharply to ¥133,426 million, and segment profit (ordinary income) rose sharply to ¥40,185 million.
Recent Overview
Core net business profit and net income reached record highs, driven by improved interest margins and gains on stock sales.
Segment profit in the Banking segment for FY2026 (ending March 2026) increased sharply to ¥40,185 million (up ¥11,348 million year on year). Against the backdrop of the Bank of Japan's policy rate hikes, interest income on loans expanded to ¥53,997 million (consolidated, up ¥12,010 million year on year), and the deposit-loan interest margin improved to 0.25% (up 0.05 percentage points year on year). Gains on sales of stocks and other securities (standalone) increased by ¥16,311 million year on year to ¥32,090 million. On the other hand, due to yen bond portfolio rebalancing operations, gains/losses on government bonds and other bonds (standalone) deteriorated to ¥(26,829) million. The non-performing loan ratio rose slightly to 1.24% (from 1.17% in the prior period). In August 2025, the Juroku Business Succession Support No.2 Investment Limited Partnership was newly established and added to the scope of consolidation.
Key Products
Growth Drivers
- Increase in interest income on loans (loan yield of 1.07%, up 0.22 percentage points year on year) and improvement in the deposit-loan interest margin (0.25%, up 0.05 percentage points year on year), against the backdrop of the Bank of Japan's policy rate hikes
- Expansion of gains/losses related to stocks and other securities (standalone gains on sales of stocks and other securities of ¥32,090 million, up ¥16,311 million year on year) through continued sales of policy-holding stocks
- Accumulation of personal loan balances centered on housing loans (housing loan balance at period-end of ¥2,171,515 million, up ¥64,078 million year on year)
- Expansion of fee and commission income (standalone ¥13,471 million, up ¥1,955 million year on year), particularly growth in fees related to assets under custody (¥8,786 million) and NOBUNAGA Succession (¥970 million)
- Improved profitability from continued improvement in the adjusted OHR (Juroku Bank standalone 53.35%, an improvement of 3.93 percentage points year on year)
- Steady capital expenditure demand in Gifu and Aichi prefectures and expansion of lending to SMEs (SME loan balance of ¥3,848,242 million)
Risks
- Risk of margin compression due to a sharp increase in funding costs (deposit interest) accompanying rising interest rates (standalone ¥11,617 million, up ¥8,020 million year on year)
- Risk of losses from deterioration in gains/losses on government bonds and other bonds due to yen bond portfolio rebalancing operations (standalone ¥(26,829) million) and securities portfolio restructuring
- Increase in non-performing loans (Juroku FG consolidated total non-performing loans of ¥65,040 million, ratio to total credit of 1.24%, up 0.07 percentage points year on year) and increase in credit-related costs (consolidated ¥2,502 million, up ¥357 million year on year)
- Risk of expanding extraordinary losses due to the occurrence of impairment losses (consolidated ¥2,835 million, up ¥418 million year on year)
- Medium- to long-term shrinkage of the market due to population decline and decreasing number of companies in the region
- Uncertainty in the global economy stemming from the protectionist trade policies of the Trump administration in the United States, and its impact on regional manufacturing (manufacturing loans of ¥577,841 million)
- Potential materialization of rising credit cost risk, as credit-related costs are forecast to increase substantially to ¥4,000 million (up ¥2,150 million year on year) in the FY2027 (ending March 2027) forecast
Last updated: June 11, 2026