The Toho Bank, Ltd.
8346・Prime Market・Banks
Business
The Bank of Fukushima, Ltd. was established in 1941 and is a regional financial institution with its main operating base in Fukushima Prefecture. Centered on deposit, lending, and foreign exchange operations conducted through 123 head office/branch offices and sub-branches, the group comprises 7 subsidiaries and 1 equity-method affiliate, including Toho Lease (Leasing Business & Installment Sales), Toho Credit Guarantee (Credit Guarantee Business), Toho Consulting Partners (Business Succession & M&A Advisory), Toho IT Human Solutions (IT consulting), Toho Card (Credit Card & Guarantee Business), and Toho Information Systems (systems development). The group provides comprehensive consulting services extending beyond financial intermediation to both corporate and individual clients, supporting the sustainable growth of the regional economy. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The core earnings source is the margin between fund procurement (deposits, negotiable certificates of deposit, etc.) and fund deployment (loans, securities). In FY2026 (ending March 2026), interest income on fund deployment was ¥62,359 million, interest expenses on fund procurement were ¥16,973 million, and net interest income was ¥45,386 million. In addition, the Group accumulated non-interest income such as brokerage of assets under custody through the comprehensive business alliance with Nomura Securities, corporate consulting fees, credit guarantee fees, and leasing revenue, recording consolidated ordinary income of ¥92,465 million for the Group as a whole.
Company Strengths
The bank maintains the largest branch network in the prefecture, comprising 123 branches and offices, including branches and sub-branches. Business loan balances reached ¥1,843,742 million at the end of March 2026, marking a record high for two consecutive periods. Housing loan balances also reached ¥822,800 million, reflecting steady expansion of the customer base in both the corporate and retail segments.
Based on the comprehensive business alliance with Nomura Securities effective from January 2025, the bank opened four "Consulting Plaza" locations and two "Consulting Branch" locations within Fukushima Prefecture. A consulting framework integrating Toho Bank employees and staff seconded from Nomura Securities was established, and the balance of new intermediary accounts expanded rapidly to ¥932,080 million by the end of March 2026, with total assets under custody reaching ¥1.2 trillion.
As of the end of March 2026, the balance of risk-managed loans stood at ¥55,253 million, representing 1.29% of total credit (down 0.05 percentage points from the end of the previous fiscal year). Consolidated credit-related costs remained low and stable at ¥733 million. The consolidated capital adequacy ratio (domestic standard) stood at 11.73% (up 0.98 percentage points from the end of the previous fiscal year), maintaining sound financial health, with the containment of credit costs contributing to higher profits.
ENVALITH's Perspective
Performance Trend
Ordinary income rose for five consecutive fiscal periods, from ¥60,227 million in FY2022 (ended March 2022) to ¥92,465 million in FY2026 (ending March 2026), with particularly accelerated expansion over the most recent two fiscal periods. Net income also continued its recovery trend from a low of ¥4,493 million in FY2023 (ended March 2023), reaching ¥12,353 million in FY2026 (ending March 2026), the highest level in the past five fiscal periods. As an external factor, the Bank of Japan's policy interest rate hikes pushed up interest on loans (¥41,509 million), interest and dividends on securities (¥13,089 million), and interest on deposits with banks (¥7,038 million). For FY2027 (ending March 2027), the company has disclosed its own forecast of ordinary income of ¥104,200 million (+12.7%) and net income of ¥13,000 million (+5.2%).
Growth Strategy
Accelerating ROE/PBR improvement through the three pillars of business loans, financial consulting, and the Nomura alliance
Expanding business loans centered on real estate, wholesale, and manufacturing companies within the prefecture, as well as loans to large corporations in Tokyo. The balance as of the end of March 2026 reached a record high of ¥1,843,742 million (up ¥68,819 million from the end of the previous fiscal year). This is positioned as the key driver for the projected increase in ordinary income of ¥930 million (non-consolidated) in FY2027 (ending March 2027).
Completed full migration to new intermediary accounts in October 2025, with the balance in new intermediary accounts rapidly expanding to ¥932,080 million as of the end of March 2026. Total assets under custody (including life insurance) increased by ¥348,172 million from the end of the previous fiscal year to ¥1,253,349 million. Aiming to boost non-interest income through expansion of fee business income.
In addition to human capital investment such as raising starting salaries and wage increases, actively pursuing digital investment. Operating expenses for FY2026 (ending March 2026) increased to ¥39,674 million (up ¥3,718 million year on year), but core net business profit (non-consolidated) achieved a significant increase to ¥16,155 million (up ¥4,883 million year on year). For FY2027 (ending March 2027), the company targets core net business profit of ¥23,400 million (up ¥7,200 million year on year), while anticipating continued expense increases.
As the shareholder return policy from FY2026 onward, the target dividend payout ratio has been raised from 30% to 40%. The annual dividend for FY2026 (ending March 2026) is ¥17 (up ¥8 year on year, payout ratio of 34.3%), with the FY2027 (ending March 2027) forecast at ¥21 (up ¥4 year on year, payout ratio of 40.3%). ROE (based on net income) improved to 6.0% (from 3.7% in the previous fiscal year), aiming to improve capital efficiency and enhance PBR.
Last updated: July 19, 2026