The Musashino Bank, Ltd.
8336・Prime Market・Banks
Business
The Musashino Bank Group is centered on the sole regional bank headquartered in Saitama City, Saitama Prefecture, and consists of eight consolidated subsidiaries — including Leasing Business, Credit Guarantee Business, card, systems, and capital-related companies — along with one equity-method affiliate. Since its establishment in 1952, the bank has upheld management principles of "coexistence with the community" and "customer respect," providing a wide range of financial services—including deposits, lending, securities, trust, foreign exchange, investment trusts, and insurance—to corporate and individual customers through a network of 98 branches and 2 sub-branches within the prefecture. Its primary customers are small and medium-sized enterprises and individuals in Saitama Prefecture, with real estate, manufacturing, construction, and personal loans constituting the main industry categories in its loan portfolio.
Business Model
Funds raised through deposits (¥5,177,040 million) are deployed into loans (¥4,308,858 million) and securities (¥965,640 million), generating net interest income of ¥51,607 million from the overall interest margin (0.30%). Adding fee income from services transactions of ¥12,224 million (investment trusts, insurance sales, corporate consulting, etc.) yields consolidated gross profit of ¥55,834 million, forming the revenue base. Group companies in leasing, credit guarantee, cards, and other businesses work in coordination with the core bank to provide diversified solutions to customers and diversify revenue sources.
Company Strengths
As the only regional bank headquartered in Saitama Prefecture, the bank operates a network of 98 branches/sub-branches and 2 business offices within the prefecture. It has concluded comprehensive agreements with Saitama Prefecture and 17 municipalities, promoting regional revitalization through public-private partnerships. Loan balances continue to expand, reaching ¥4,308,858 million (up ¥195,577 million year on year), giving it an overwhelming customer base as a regional financial institution.
Assets under custody, including investment trusts and life insurance, reached ¥843,200 million (up ¥121,200 million year on year, an annual growth rate of 16.8%), steadily capturing the shift "from savings to asset formation." The Musashino Bank app has over 300,000 users, and the integration of face-to-face and non-face-to-face channels to strengthen customer touchpoints has contributed to the expansion of fee income (services transactions) to ¥16,598 million.
The consolidated capital adequacy ratio stands at 13.41% (13.27% in the previous fiscal year), significantly exceeding the domestic standard target of 10.5%. Bankrupt and reorganization receivables of ¥8.8 billion and doubtful receivables of ¥27.1 billion show an improving trend compared to the previous fiscal year, while the ratio of normal receivables remains at a high level. Under a rigorous risk management framework adopting the Foundation Internal Ratings-Based Approach, the bank maintains a sound loan portfolio.
ENVALITH's Perspective
Performance Trend
Ordinary income increased 48.5% over five fiscal periods, from ¥71,186 million in FY2022 (ending March 2022) to ¥105,684 million in FY2026 (ending March 2026). In particular, FY2026 showed accelerating growth with a 25.6% increase year-on-year. The main driver was the rapid expansion of interest income on fund management resulting from the external factor of the Bank of Japan's policy interest rate hikes (interest on loans: ¥49,940 million, up from ¥39,938 million in the previous period; interest and dividends on securities: ¥14,674 million, up from ¥11,745 million in the previous period). Profit attributable to owners of parent was ¥15,412 million (up 17.2% from ¥13,146 million in the previous period), marking five consecutive years of profit growth. For FY2027 (ending March 2027), net income is forecast at ¥19,500 million (up 26.5%). The payout ratio rose to 36.4% (from 31.4% in the previous period), and under the progressive dividend policy, an annual dividend of ¥82 (post-split basis) is planned for FY2027 (ending March 2027).
Growth Strategy
Under the medium-term management plan "MCP 2/3," the Bank is advancing region-focused, hands-on support for customers alongside diversification of revenue sources.
Launched a four-year plan covering April 2026 to March 2030. Aiming to become the region's No.1 solutions bank, the Bank is making focused investments in digital, human capital, and alliances. For FY2027 (ending March 2027), the first year of the plan, the target is consolidated ordinary profit of ¥28,700 million and net income of ¥19,500 million.
Through proactive support for the cash flow of companies and individuals within Saitama Prefecture, the non-consolidated loan balance expanded to ¥4,321,383 million (up 4.7% year on year). The overall interest margin improved to 0.30% (from 0.22% in the previous fiscal year), and net interest income reached ¥52,436 million (up from ¥45,922 million in the previous fiscal year). Revenue expansion by maximally leveraging the rising interest rate environment is ongoing.
Total assets under custody, including investment trusts, life insurance, and government bonds, steadily expanded to ¥843,200 million (up 16.8% year on year), with the investment trust balance up 26.1% year on year. Fee Business (Services Transactions) income (consolidated) increased to ¥16,598 million (up from ¥15,610 million in the previous fiscal year), maintaining an upward trend. Core net business profit (non-consolidated) rose substantially to ¥24,737 million (up from ¥17,304 million in the previous fiscal year), reducing reliance on interest income.
Effective April 1, 2026, the Bank implemented a stock split at a ratio of 3 shares for every 1 share of common stock, aiming to lower the investment unit to expand the investor base and improve share liquidity. The annual dividend for FY2027 (ending March 2027) is planned at ¥82 per share (post-split basis), continuing the progressive dividend policy targeting a payout ratio of approximately 40%.
Last updated: July 19, 2026