The Ogaki Kyoritsu Bank, Ltd.
8361・Prime Market・Banks
Banking
The core segment of the OKB Group. A regional banking business handling deposits and lending, securities investment, and fee-based services.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (external customers, full year) | ¥124,110 million | ¥80,586 million | ↑ |
| Banking segment profit (full year) | ¥20,264 million | ¥17,960 million | ↑ |
| Banking segment assets (fiscal year-end) | ¥6,626,040 million | ¥6,436,909 million | ↑ |
| Banking depreciation expense (full year) | ¥3,984 million | ¥3,787 million | ↑ |
| Banking increase in tangible and intangible fixed assets (full year) | ¥3,142 million | ¥3,821 million | ↓ |
| Non-consolidated loan balance (fiscal year-end) | ¥4,622,214 million | ¥4,494,767 million | ↑ |
| Non-consolidated deposit balance (fiscal year-end) | ¥5,862,573 million | ¥5,723,280 million | ↑ |
| Non-consolidated net interest income (full year) | ¥57,783 million | ¥46,399 million | ↑ |
| Non-consolidated core net business profit (full year) | ¥16,895 million | ¥16,202 million | ↑ |
| Non-consolidated total interest margin (full year) | 0.23% | 0.09% | ↑ |
| Non-consolidated capital adequacy ratio (domestic standard, preliminary, fiscal year-end) | 9.16% | 9.31% | ↓ |
Business Details
The Ogaki Kyoritsu Bank, Ltd. operates primarily in Gifu Prefecture, providing deposit-taking, lending, domestic and foreign exchange operations, over-the-counter sales of government bonds, investment trusts, and insurance, and securities investment business, among others. It maintains representative offices in Shanghai and Manila, providing information support to companies expanding overseas. This core segment accounts for approximately 70% of the Group's total ordinary income, with its basic strategy centered on expanding net interest income and promoting quality-focused lending.
Recent Overview
Net interest income expanded significantly amid rising interest rates, and gains on sales of equities also increased, pushing segment profit up ¥2,304 million year on year.
Against the backdrop of the Bank of Japan's policy rate hikes (to 0.75% in December 2025), the non-consolidated loan yield rose 0.23 percentage points year on year to 1.10%, and the securities yield rose to 2.09% (up 0.83 percentage points year on year), resulting in net interest income of ¥57,783 million, up ¥11,383 million year on year. On the other hand, interest expenses on deposits surged to ¥11,433 million (up ¥7,969 million year on year), pushing up funding costs. Gains on sales of equities, etc. of ¥28,149 million (up ¥5,611 million year on year) boosted ordinary profit. Due to the realization of unrealized losses on bonds (losses on government bonds and other bonds of ¥26,297 million), gross operating profit declined ¥18,872 million year on year, but improvement in extraordinary gains and losses secured segment profit of ¥20,264 million. The non-performing loan ratio improved to 1.20% (from 1.28% in the previous fiscal year), and the coverage ratio improved to 88.93% (from 88.00% in the previous fiscal year).
Key Products
Growth Drivers
- Further increases in loan interest income and interest income on deposits with other banks, driven by the Bank of Japan's continued phased interest rate hikes (raised to 0.75% in December 2025) amid the transition to a "world with interest rates"
- Expansion of net interest income driven by increased corporate lending to the wholesale, retail, real estate, and other industries (up ¥127,447 million from the end of the previous fiscal year to ¥4,622,214 million)
- Increase in fee and commission income driven by expansion of the balance of custodial assets held for individuals (non-consolidated ¥1,165,082 million, up ¥163,368 million from the end of the previous fiscal year)
- Continued recording of gains on sales of equities, etc. accompanying the reduction of cross-shareholdings (¥28,149 million in FY2026 (ending March 2026))
- Creation of sales resources and qualitative improvement of the revenue structure through the promotion of growth and DX strategies under the medium-term management plan "Always - Changing Tomorrow with an Unchanging Commitment -" (FY2024-FY2026)
- Boosting non-interest income through the group-wide expansion of custodial asset balances (¥1,361,191 million, up ¥204,153 million from the end of the previous fiscal year)
Risks
- Risk of margin compression due to an accelerating sharp increase in funding costs (deposit interest) amid rising interest rates (¥11,433 million in FY2026 (ending March 2026), up ¥7,969 million year on year)
- Downward pressure on gross operating profit due to unrealized losses in the bond portfolio (valuation losses on non-consolidated other securities bonds of ¥50,721 million) and the realization of such losses
- Impact on key industries in the Tokai region, such as automotive parts suppliers, stemming from uncertainty over US tariff policy and instability in the Middle East (military strikes on Iran by the US and Israel)
- Decline in individual deposits (down ¥18,963 million from the end of the previous fiscal year to ¥4,077,128 million) and contraction in the housing loan balance (down ¥10,051 million from the end of the previous fiscal year to ¥1,827,012 million)
- Change in the composition of the loan portfolio due to contraction in lending to national and local governments (down ¥38,775 million from the end of the previous fiscal year to ¥499,184 million)
- Decline in the non-consolidated capital adequacy ratio (domestic standard) (9.16%, down 0.15 percentage points from the end of the previous fiscal year) and increase in risk assets (up ¥139,068 million from the end of the previous fiscal year to ¥2,854,480 million)
Last updated: June 26, 2026