Hachijuni Nagano Bank, Ltd.
8359・Prime Market・Banks
Business
Hachijuni Nagano Bank, Ltd. is Nagano Prefecture's largest regional bank group, formed when Hachijuni Bank, established in 1931, absorbed Nagano Bank in January 2026. Centered on its core banking operations (Deposits & Loans Business, foreign exchange, and settlement services), it is a comprehensive financial group comprising 16 companies, including leasing (Hachijuni Lease, Nagagin Lease, Hachijuni Auto Lease), securities (Hachijuni Securities), credit guarantee (Hachijuni Credit Guarantee), credit cards (Hachijuni Card, Nagano Card), venture capital, and regional trading company & electricity businesses (Hachijuni Link Nagano). Its main customers are individuals, small and medium-sized enterprises, and local governments within Nagano Prefecture, and it also serves overseas needs through its Singapore branch. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A revenue structure in which net interest income (interest on loans, interest and dividends on securities, and interest on deposits) accounts for approximately 91% of consolidated gross profit. This is supplemented by fee income (fees and commissions of ¥20.3 billion) from sales of investment trusts, insurance, public bonds, etc., as well as securities-related gains and losses (¥35.0 billion) including gains on sales of equities. Through cross-selling in cooperation with group companies such as leasing, securities, and card businesses, the company aims to raise revenue per customer, while the integration of customer base and management resources via the merger with Nagano Bank pursues both cost efficiency and expansion of revenue scale simultaneously.
Company Strengths
Following the merger, the parent-only ending loan balance reached ¥6,788.6 billion (up ¥762.5 billion year on year, an annualized rate of 12.6%), and the ending deposit balance reached ¥9,568.5 billion (up ¥874.6 billion year on year), giving the bank a scale that far outpaces other banks within Nagano Prefecture. It covers a broad customer base, with ¥4,445.6 billion for general corporate clients and ¥1,653.3 billion for consumer clients, and the integration of customer bases through the merger has further strengthened its scale advantage.
The bank was selected for CDP's climate change survey "A List" for three consecutive years, the first among Japanese banks to achieve this, and has been selected as a constituent of the FTSE4Good and FTSE Blossom Japan Index. It achieved group net-zero by reducing greenhouse gas emissions by 74.1% compared to FY2019 levels. Concrete achievements—including grasping emissions data for 554 borrower companies and cumulative sustainable finance executed of ¥52.2 billion—have established its advanced initiatives as recognized externally.
Through a 16-company structure encompassing banking, leasing, securities, credit guarantee, credit cards, venture capital, regional trading company operations, and electric power business, the group provides one-stop financial and non-financial services to both corporate and individual customers. The balance of investment-type products expanded to ¥541.5 billion across all branches (up ¥156.2 billion year on year), and fee and commission income steadily accumulated to ¥20.3 billion (up ¥2.5 billion year on year).
ENVALITH's Perspective
Performance Trend
Ordinary income expanded more than twofold over five fiscal years, from ¥151,349 million in FY2022 (ended March 2022) to ¥305,443 million in FY2026 (ending March 2026). FY2026 growth accelerated further, up 20.1% year on year. Net income attributable to owners of the parent reached a record high of ¥64,572 million (up 34.5% year on year). Externally, the Bank of Japan's policy rate hikes were the main driver, causing a sharp increase in interest on loans (¥86,838 million, up ¥14,138 million year on year) and interest on deposits with banks (¥16,735 million, up ¥8,349 million). In addition, the absorption-type merger with Nagano Bank (January 2026) expanded scale, while gains on sales of equities and other securities of ¥35,040 million (consolidated) and gains on sales of Japanese government bonds and other bonds of ¥22,992 million (non-consolidated) pushed up profit. ROE (consolidated) improved to 6.1% (from 4.6% in the previous fiscal year). Comprehensive income recovered sharply to ¥221,096 million, from ¥-117,253 million in the previous fiscal year.
Growth Strategy
With the completion of the merger with The Nagano Bank as a starting point, the Group is evolving into a comprehensive regional financial group through interest rate normalization, sustainable finance, and expanded sales of investment-type products.
The absorption-type merger was completed on January 1, 2026, and the trade name was changed to The 82 Nagano Bank. Non-consolidated loan balances expanded significantly to ¥6,788.6 billion and deposits to ¥9,568.5 billion. The integration of the two banks' expertise, relationships, and personnel is strengthening value delivery to regional customers. For FY2027 (ending March 2026 [sic]), the Bank targets consolidated ordinary profit of ¥106,000 million (up 30% year on year), anticipating the full emergence of integration synergies.
Non-consolidated total interest margin improved to 0.30% (up 0.04pt year on year), and loan yield rose to 1.10% (up 0.29pt), reflecting an improving trend. Capturing rising yields on floating-rate loans and increased interest income on deposits, core net business profit reached ¥54,524 million (up ¥7,751 million year on year). For FY2027 (ending March 2027), further expansion of fund income is expected, premised on additional rate hikes.
Individual customer assets held in custody (all branches) reached ¥6,904.9 billion (up ¥151.6 billion year on year), of which investment-type products surged to ¥541.5 billion (up ¥156.2 billion). Growth in balances of investment trusts (¥353.4 billion) and public bonds (¥177.5 billion) boosted fee and commission income (consolidated ¥28,459 million, up ¥2,696 million year on year). Leveraging the expanded customer base from the merger with The Nagano Bank, the Bank will strengthen its response to asset management needs.
On April 1, 2026, 1,935,800 shares (disposal price ¥1,645.5 per share, total disposal amount approximately ¥3.1 billion) were allotted to the 82 Group Employee Stockholding Association through a third-party allotment. The aim is to support employees' asset formation and provide incentives to enhance corporate value, promoting value sharing with shareholders.
The annual dividend for FY2026 (ending March 2026) was ¥60 (a substantial increase from ¥42 in the previous fiscal year, including a commemorative dividend of ¥5), with a payout ratio of 42.4%. The FY2027 (ending March 2027) forecast is ¥65 (interim ¥30, year-end ¥35), continuing the policy of dividend increases. Share buybacks were also conducted (¥10,003 million in the current fiscal year), reinforcing the overall shareholder return stance. Net assets per share rose to ¥2,534.41 (from ¥2,087.32 in the previous fiscal year).
Last updated: July 19, 2026