Tsukuba Bank, Ltd.
8338・Prime Market・Banks
Business
The Bank of Tsukuba, Ltd. is a regional bank whose primary business base is Ibaraki Prefecture, established in 2010 through the merger of Kanto Tsukuba Bank and The Ibaraki Bank. It operates 141 head office/branches and 7 sub-branches (69 effective business locations), providing comprehensive financial services including deposits, loans, exchange, insurance, and investment trusts primarily to individuals, small and medium-sized enterprises, and local governments. The group comprises 3 consolidated subsidiaries (System Development, Consulting, and Investment) and conducts group management centered on the Banking Business. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The bank's business is based on the traditional deposit-lending model, using deposits (period-end balance ¥2,554,053 million) as the primary funding source, deployed into loans (period-end balance ¥2,207,188 million) and securities (period-end balance ¥421,754 million). In addition, fee income (fees and commissions income of ¥10,244 million) from the sale of assets in custody (¥399,300 million), such as investment trusts and life insurance, is being cultivated as a key pillar of revenue, resulting in a revenue structure built on two pillars: interest income and fee income.
Company Strengths
The bank operates 141 branches and sub-branches plus 7 outposts, maintaining 69 substantive business locations. Of the total loan balance of ¥2,207,188 million, loans to local governments amounted to ¥449,142 million (20.35% of the total) and loans to the real estate industry ¥287,752 million (13.04%), reflecting a community-based lending base. Lending to individuals and SMEs, including ¥620,099 million in housing loans, continues to expand.
Assets in custody, centered on investment trusts (¥202,465 million) and life insurance (¥186,525 million), reached ¥399,300 million (up ¥49,741 million year on year). Fee revenue from securities-related business expanded to ¥2,976 million (up ¥775 million year on year), steadily reinforcing a fee income base that is not dependent on interest income.
In the non-consolidated results for FY2026 (ending March 2026), the first year of the 6th Medium-Term Management Plan, net income reached ¥6.5 billion (against a target of ¥5.0 billion or more), ROE was 6.97% (against a target of 5% or more), core OHR was 70.48% (against a target in the 70% range), and the capital adequacy ratio was 9.51% (against a target of 9% or more) — all metrics exceeding their targets. Surpassing every target in the plan's first year demonstrates a high level of management execution capability.
ENVALITH's Perspective
Performance Trend
Ordinary income remained flat from ¥36,680 million in FY2022 to ¥41,126 million in FY2025, but sharply accelerated in FY2026 to ¥50,273 million (up 22.2% year on year). The main external factor was an increase in interest on loans (¥28,520 million, up ¥5,320 million year on year) resulting from the Bank of Japan's rate hike. Net income bottomed out at ¥2,095 million in FY2023 and has continued on a recovery trend, reaching ¥6,670 million in FY2026 (up 62.5% year on year), the highest level in the past five fiscal years. A substantial improvement in credit-related costs (¥984 million, down ¥1,641 million year on year) also contributed to the expansion in profit. On the other hand, it should be noted that losses on sales of bonds such as government bonds of ¥6,027 million (up ¥3,877 million year on year) weighed on gross operating profit, causing core net business profit (non-consolidated) to decline to ¥4,013 million (down ¥856 million year on year). Comprehensive income improved significantly to ¥14,506 million (from ¥-4,990 million in the previous period), aided also by a reduction in unrealized losses on securities.
Growth Strategy
Under the 6th Medium-Term Management Plan "Rising Innovation 2028," the company is advancing three pillars: human capital, DX, and business strengthening.
Continued expansion of loan balances centered on residential mortgages, loans to small and medium-sized enterprises, and loans to local governments. The balance of loans outstanding at the end of March 2026 reached ¥2,207,188 million (up ¥91,116 million year on year), setting a new historical peak. Loan yield rose to 1.31% (up 0.19 points year on year), continuing to expand net interest income.
Expanded the balance of assets in custody, including investment trusts, life insurance, and public bonds, to ¥399,300 million (up ¥49,741 million year on year). Fee and commission income rose to ¥10,244 million (up ¥1,037 million year on year), continuing an upward trend. Strengthening non-interest income to enhance resilience against interest rate risk.
Improvement in soundness continued, with the disclosed claims ratio under the Financial Reconstruction Act at 2.36% (down 0.36 points year on year) and credit-related expenses of ¥984 million (an improvement of ¥1,641 million year on year). Aiming to stabilize profit levels by controlling credit costs through appropriate management of the allowance for doubtful accounts.
Pursuant to a resolution of the Board of Directors on March 30, 2026, a proposal to reduce capital stock by ¥17,500 million out of the total ¥48,868 million and transfer the amount to other capital surplus is scheduled to be submitted to the Annual General Meeting of Shareholders on June 24, 2026. The effective date is scheduled for September 30, 2026. The purpose is to secure flexibility in financial strategy.
The 6th Medium-Term Management Plan sets targets of ROE of 5% or higher, net income of ¥5.0 billion or more, and a capital adequacy ratio (domestic standard) of 9% or higher. In FY2026 (ended March 2026), the company achieved levels exceeding all targets, with ROE of 6.7% (consolidated), net income of ¥6,670 million, and a capital adequacy ratio of 9.55% (consolidated).
Last updated: July 19, 2026