The Yamanashi Chuo Bank,Ltd.
8360・Prime Market・Banks
Business
The Yamanashi Chuo Bank is a regional financial institution founded in 1877 (adopted its current name in 1941), with its main business base in Yamanashi Prefecture and the Tokyo area. Centered on Deposits, Lending, and Securities Investment, it offers domestic and foreign exchange, over-the-counter sales of investment trusts and insurance, and various consulting services. The group consists of 6 consolidated subsidiaries and provides a wide range of financial and regional services, including credit guarantees (Yamanashi Chuo Hosho), leasing (Yamanashi Chugin Lease), Credit Card Business (Yamanashi Chugin DC Card), management consulting and venture capital (Yamanashi Chugin Management Consulting), Investment Advisory (Yamanashi Mirai Investment), and tourism, decarbonization, and marketing (Yamanashi Chiiki Design). The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Net interest income (interest on loans and interest and dividends on securities) forms the core of earnings, with net interest income of ¥41,399 million in FY2026 (ending March 2026) accounting for the majority of consolidated gross profit. This is supplemented by fees and commissions income (fees and over-the-counter sales) of ¥8,071 million, along with extraordinary income such as gains on sales of equity securities. Group subsidiaries complement the Banking business through Leasing, Credit Card Business, Consulting, and other services, forming a revenue structure that addresses diverse customer needs as a comprehensive financial services provider.
Company Strengths
As of the end of FY2026 (ending March 2026), the loan balance (non-consolidated) reached ¥3,032,868 million (up ¥272,802 million year on year), and total deposits (consolidated) exceeded ¥3,796,100 million. With loans to SMEs and others of ¥1,784,488 million and consumer loans of ¥594,243 million, the bank has built a community-based customer base over many years, giving it a regional market share that competing banks cannot easily replicate in a short period.
The bank has established a framework comprising six consolidated subsidiaries covering credit guarantee, leasing, credit cards, management consulting, investment advisory, and regional design, enabling it to provide integrated value-added services that would be difficult to offer through the bank alone. With the addition of Yamanashi Chiiki Design, established in April 2025, the group has also expanded its business domain into tourism, decarbonization, and marketing.
Through the "Fuji-san Alps Alliance," the three banks collaborate on ventures, M&A, business succession, and migration promotion while maintaining their independence. As of the end of March 2026, the three banks combined expect a cumulative five-year earnings effect of ¥11.1 billion, reflecting a wide-area network and deal-origination capability that would be difficult to achieve independently.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026, consolidated), the company achieved substantial earnings growth, with ordinary income of ¥86,104 million (up 42.3% year on year), ordinary profit of ¥13,832 million (up 30.2%), and profit attributable to owners of parent of ¥9,987 million (up 30.2%). As an external factor, driven by the Bank of Japan's policy interest rate hikes, interest on loans (consolidated ¥34,073 million, up 35.8% year on year) and interest and dividends on securities (¥14,564 million, up 52.2%) expanded rapidly. Gains on sales of stocks and other securities (¥13,376 million on a non-consolidated basis) also contributed significantly. On the other hand, funding costs (consolidated ¥10,190 million) and other operating expenses (¥28,173 million) also increased sharply. Comprehensive income improved substantially to ¥23,520 million from a loss of ¥3,045 million in the previous period, as net unrealized gains on other securities turned from a valuation loss in the previous period to a valuation gain (consolidated ¥4,935 million).
Growth Strategy
Aiming for ROE of 5% or more and net income of ¥10 billion or more in FY2028 (ending March 2028) under "Value Creation Company～1st Stage"
Expand loan balances centered on SME and consumer loans, and improve the interest margin amid rising interest rates. Non-consolidated period-end balance progressed steadily to ¥3,032,868 million (up ¥272,802 million year on year) in FY2026 (ending March 2026). Interest on loans is projected at ¥46.0 billion (up ¥11.9 billion year on year) in FY2027 (ending March 2027).
Increase securities balances mainly through Japanese government bonds (non-consolidated balance of ¥1,158,231 million), aiming for stable growth in interest and dividends on securities. Interest rate risk management is also implemented through the use of deferred hedges. Interest and dividends on securities are planned at ¥16.7 billion (up ¥1.6 billion year on year) in FY2027 (ending March 2027).
Expand collaboration in venture investment, M&A, business succession, and DX through the comprehensive business alliance with Shizuoka Bank and Hachijuni Bank. Strengthen the ability to handle large-scale deals that would be difficult to manage alone, while diversifying non-interest income.
Utilize Yamanashi Chiiki Design Co., Ltd., newly consolidated in FY2025, to develop new revenue sources in tourism, decarbonization, and marketing fields. Pursue both contribution to regional resilience and diversification of revenue simultaneously.
Achieved an annual dividend of ¥131 per share (dividend payout ratio of 40.1%) in FY2026 (ending March 2026), and plans an annual dividend of ¥163 per share (target ratio of 40%) in FY2027 (ending March 2027). While maintaining a performance-linked dividend policy, aim to improve PBR through ROE improvement.
Last updated: July 19, 2026