The Musashino Bank, Ltd.
8336・Prime Market・Banks
Banking
The core segment of the Musashino Bank Group, responsible for comprehensive banking operations centered on Saitama Prefecture.
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income (segment total, including intersegment) | ¥92,395 million | ¥71,540 million | ↑ |
| Segment profit | ¥21,642 million | ¥17,127 million | ↑ |
| Segment assets | ¥5,619,735 million | ¥5,449,594 million | ↑ |
| Interest income | ¥66,083 million | ¥53,055 million | ↑ |
| Interest expenses | ¥13,650 million | ¥7,134 million | ↑ |
| Core net business profit (non-consolidated) | ¥24,737 million | ¥17,304 million | ↑ |
| Overall interest margin (non-consolidated, total) | 0.30% | 0.22% | ↑ |
| Non-performing loan ratio (non-consolidated) | 1.50% | 1.59% | ↓ |
| Depreciation | ¥3,937 million | ¥3,851 million | ↑ |
| Capital adequacy ratio (domestic standard, non-consolidated) | 12.70% | 12.64% | ↑ |
Business Details
The Banking segment conducts core banking operations including the Deposit Business, Lending Business, foreign exchange business, and the Securities Investment Business. It has a community-based business foundation centered on Saitama Prefecture, and provides non-financial services such as business succession, M&A, and consulting to corporate customers, while offering asset management, housing loans, and inheritance-related services to individual customers. In FY2026 (ending March 2026), ordinary income (including intersegment, total) was ¥92,395 million, and segment profit was ¥21,642 million, accounting for the majority of the Group's overall revenue.
Recent Overview
Rising interest rates and loan growth drove a substantial increase in net interest income, with core net business profit rising by more than ¥7.4 billion year on year.
In FY2026 (ending March 2026), against the backdrop of the Bank of Japan's policy rate hikes, the Banking segment saw interest on loans increase to ¥49,970 million (prior period: ¥39,943 million) and interest and dividends on securities increase to ¥15,390 million (prior period: ¥12,614 million), expanding interest income to ¥66,083 million (up ¥13,028 million year on year). Meanwhile, interest on deposits also rose to ¥10,278 million (prior period: ¥3,425 million), reflecting higher funding costs. Core net business profit improved substantially to ¥24,737 million (up ¥7,432 million year on year). The non-performing loan ratio improved to 1.50% (prior period: 1.59%). From April 2026, the new medium-term management plan "MCP 2/3 (Two-Third)" (April 2026 - March 2030) commenced.
Key Products
Growth Drivers
- Increase in interest on loans and interest and dividends on securities due to the Bank of Japan's policy rate hikes (interest income: ¥66,083 million in FY2026 (ending March 2026), versus ¥53,055 million in the prior period)
- Continued expansion of loan balance (¥4,321,383 million as of end-March 2026 on a non-consolidated basis, up ¥194,930 million year on year, a 4.7% annual increase)
- Improvement in overall interest margin (0.30% overall, versus 0.22% in the prior period; domestic segment 0.23%, versus 0.13% in the prior period)
- Expansion of assets under custody such as investment trusts and life insurance (total of ¥843,200 million, up ¥121,200 million year on year, a 16.8% annual increase), driving increased fee income
- Strengthening of community-based hands-on support and expansion of the customer base under the new medium-term management plan "MCP 2/3 (Two-Third)" (April 2026 - March 2030)
- Utilization of extraordinary gains such as gains on sales of equities (net equity-related gains/losses, 3-account balance, of ¥7,142 million, versus ¥1,318 million in the prior period)
Risks
- Accelerating rise in funding costs (interest on deposits) due to additional BOJ rate hikes (interest on deposits of ¥10,278 million in FY2026 (ending March 2026), roughly triple the ¥3,425 million in the prior period)
- Risk of expanding valuation losses in the securities portfolio (non-consolidated other securities valuation gains/losses of ¥-25,307 million, bond valuation losses of ¥-68,533 million)
- Increase in loans requiring special attention (¥29,810 million as of end-March 2026 on a non-consolidated basis, up ¥5,424 million year on year) and risk of rising credit costs (non-consolidated provision for loan losses of ¥4,760 million, versus ¥1,868 million in the prior period)
- Concentration risk in loans to the real estate and goods rental industries (¥1,163,015 million on a non-consolidated basis, approximately 26.9% of total loans)
- Risk of deteriorating business conditions among companies within the prefecture and rising credit costs due to uncertainty over US trade policy and geopolitical risk
- Risk of long-term decline in deposit and loan demand within Saitama Prefecture due to population aging and declining birthrate leading to economic contraction
- Continued losses in net bond-related gains/losses (5-account balance) (¥-7,359 million, versus ¥-1,470 million in the prior period), exerting downward pressure on net business profit
Last updated: June 18, 2026