The Chiba Bank, Ltd.
8331・Prime Market・Banks
Business
The Chiba Bank, Ltd. is a regional bank founded in 1943 with its base in Chiba Prefecture. With 164 domestic branches/sub-branches, 14 sub-offices, and 4 overseas branches, it provides a wide range of financial services to individuals and corporations, including deposits, loans, exchange, securities, trust, leasing, and credit cards. Through 15 consolidated subsidiaries (Chibagin Securities, Chibagin Guarantee, Chibagin Leasing, Chibagin Card, Edge Technology, etc.), the group as a whole provides regional financial functions. Its main customers are individuals and small-to-medium enterprises within Chiba Prefecture, and as part of its super-regional strategy, it is also expanding into the Greater Tokyo area. In April 2027, it plans to establish a holding company, "Chiba Financial Group Integration-Related Co., Ltd.," through a joint share transfer with The Chiba Kogyo Bank, Ltd.
Business Model
The main revenue sources are net interest income centered on loan interest (¥194,758 million on a consolidated basis) and net fees and commissions (¥42,424 million on a consolidated basis). The Bank procures individual deposits at low cost and earns investment spreads through loans to small and medium-sized enterprises, housing loans, and securities investment. In addition, fee income through group companies engaged in securities brokerage, trust, guarantee, leasing, and other businesses supplements earnings. While maintaining high cost efficiency with a non-consolidated OHR of 41.58%, the company has a structure that converts changes in the interest rate environment into earnings.
Company Strengths
With 164 domestic branches/sub-branches and 14 sub-offices, personal deposit balances reached ¥16,830.4 billion, up ¥578.5 billion from the previous fiscal year-end, while loan balances reached ¥14,082.3 billion, up ¥899.1 billion from the previous fiscal year-end. The customer base, backed by many years of business operations within Chiba Prefecture, is a unique strength that competitors would find difficult to replicate in a short period.
Through the TSUBASA Alliance, which brings together 10 regional top banks, the company continues to achieve cost reductions and enhanced functionality by leveraging economies of scale, including joint development of the next-generation core banking system, back-office collaboration (the TSUBASA Joint Operations Center initiative), and the agreement for Gunma Bank to newly join the alliance.
The cumulative number of registered accounts for the "Chibagin App" has reached 1.46 million. Functions such as life plan simulation, family account inquiries, and digital passbook conversion have been added sequentially, deepening customer engagement and account activation through digital channels. AI collaboration with Edge Technology is also underway.
ENVALITH's Perspective
Performance Trend
Ordinary income expanded roughly 1.9-fold over five periods, from ¥236,092 million in FY2022 (ending March 2022) to ¥445,037 million in FY2026 (ending March 2026). Net income also increased from ¥54,498 million to ¥94,063 million, with the profit growth rate accelerating to 26.6% in FY2026 (ending March 2026). As an external factor, the Bank of Japan's policy rate hikes boosted interest on loans (¥193,700 million, up ¥43,252 million year on year) and interest and dividends on securities (¥83,489 million, up ¥21,756 million year on year). Profitability efficiency also improved significantly, with non-consolidated core net business profit of ¥138.5 billion, an OHR of 41.58%, and non-consolidated ROE of 8.36%. Comprehensive income turned positive, swinging from minus ¥1,360 million in the prior period to ¥159,460 million. For FY2027 (ending March 2027), ordinary income is forecast at ¥154,300 million and net income at ¥107,000 million.
Growth Strategy
Under the Engagement Bank Group vision, the company pursues sustainable growth through integration, digital transformation, and loan expansion.
On March 25, 2026, the company entered into a management integration agreement. Through a joint share transfer scheme, a wholly owning parent company, "Chiba Financial Group, Inc.," is scheduled to be established with an effective date of April 1, 2027. The integration aims to strengthen regional financial capabilities within Chiba Prefecture, enhance service sophistication, and reinforce the management foundation.
Loan balances expanded mainly through loans to small and medium-sized enterprises and housing loans (non-consolidated period-end balance of ¥14,147.7 billion, up ¥914.4 billion from the previous period-end). The deposit base was also expanded, primarily through personal deposits (non-consolidated period-end balance of ¥16,851.4 billion, up ¥582.6 billion from the previous period-end), aiming to secure stable funding and expand interest margin income.
Asset management-related income was expanded, with investment trust balances of ¥493.4 billion (up ¥66.1 billion from the previous period-end) and personal annuity insurance balances of ¥939.8 billion (up ¥18.0 billion from the previous period-end). Corporate Solution Services-related fees of ¥19.3 billion (up ¥1.1 billion year on year) also steadily accumulated non-interest income from corporate clients. The company aims for continued expansion of fees and commissions (non-consolidated: ¥31,783 million).
The annual dividend for FY2026 (ending March 2026) was ¥52 per share (up ¥12 year on year), with a payout ratio of 38.8%. For FY2027 (ending March 2027), the dividend is forecast at ¥64 per share (up ¥12 year on year), with a payout ratio of 41.3%. Share buybacks were also continuously conducted (¥15,006 million acquired during the current period), aiming to improve the total return ratio.
Last updated: July 19, 2026