The Chiba Bank, Ltd.

Business Details

The Chiba Bank Group is a regional bank group with its main base in Chiba Prefecture and the greater Tokyo metropolitan area. Centered on the core bank (187 branches), the group comprises 9 consolidated subsidiaries and 6 equity-method affiliates. Its raison d'être is to provide functional value such as deposits, loans, and exchange services, along with social value through solving regional issues, and it has adopted the vision of becoming an "Engagement Bank Group." While net interest income remains its primary revenue source, the group is also promoting expansion of fee and commission income and pursuing DX, GX, and alliance strategies.

Recent Overview

Both ordinary profit and net profit reached record highs, boosted by rising interest rates, with an increased dividend also implemented.

In FY2026 (ending March 2026), net interest income expanded significantly, mainly due to increases in interest on loans (non-consolidated: ¥194,141 million, up ¥43,510 million year on year) and interest and dividends on securities (non-consolidated: ¥86,484 million, up ¥20,742 million year on year). Consolidated ordinary profit reached ¥138,815 million (up 29.1% year on year), and profit attributable to owners of parent reached ¥94,063 million (up 26.6% year on year). The annual dividend was increased to ¥52 (from ¥40 in the prior year). For FY2027 (ending March 2027), the company forecasts consolidated ordinary profit of ¥154,300 million and net profit of ¥107,000 million, and plans a dividend of ¥64. A business integration agreement with The Chiba Kogyo Bank was concluded on March 25, 2026, and procedures are underway toward the establishment of the holding company on April 1, 2027.

Key Products

Growth Drivers

• Increase in interest income from loans and securities due to the Bank of Japan's policy rate hikes (non-consolidated net interest income of ¥198,000 million, up ¥41,200 million year on year)
• Increase in loan balance through active promotion of business loans (non-consolidated ending balance up ¥914.4 billion from the previous fiscal year-end)
• Expansion of the deposit base, mainly driven by individual deposits (non-consolidated ending balance up ¥582.6 billion from the previous fiscal year-end)
• Increase in gains/losses related to equities (non-consolidated: ¥27,000 million, up ¥8,870 million year on year)
• Expansion of housing loan disbursements (¥512.0 billion for the period, up ¥146.6 billion year on year)
• Strengthening of regional financial power and expansion of scale through business integration with The Chiba Kogyo Bank (holding company scheduled to be established in April 2027)
• Improvement in profitability efficiency through OHR improvement (non-consolidated: 41.58%, down 4.98 percentage points year on year)

Risks

• Risk of margin compression due to increased funding costs (consolidated: ¥110,699 million, up 28.3% year on year)
• Risk of expanding valuation losses on the bond portfolio due to rising long-term interest rates (non-consolidated bond valuation loss of ¥167.9 billion; total valuation gain/loss after considering derivative deferred hedges of negative ¥99.0 billion)
• Risk of increased expenses mainly due to an increase in other operating expenses (consolidated: ¥20,736 million, up ¥7,072 million year on year)
• Risk of rising credit costs due to an increase in provision for loan losses (consolidated: ¥4,618 million, up ¥2,325 million year on year)
• Expansion of impairment losses (consolidated: ¥2,534 million, up ¥2,302 million year on year)
• Risks related to integration costs, shareholder meeting approvals, and obtaining regulatory authorization in the business integration process with The Chiba Kogyo Bank
• Risk of deterioration in the regional economy and client business conditions due to U.S. trade policy and price increases, among other factors
• Intensifying competition and cybersecurity risk due to technological innovation in financial services and entry from other industries