THE SHIMIZU BANK,LTD.
8364・Prime Market・Banks
Business
Shimizu Bank, Ltd. was established in 1928 (as Sunshu Bank) and changed to its current name in 1948; it is a regional financial institution based in Shizuoka Prefecture. In addition to its head office, it operates 77 branches and 1 sub-branch, and its core business is banking operations including the Deposit Business, Lending Business, Remittance & Foreign Exchange Business, Securities Investment Business, Investment Trust & Insurance Sales (Personal Assets Under Custody), insurance agency services, and financial product intermediation. Through 6 consolidated subsidiaries, the company also operates the Leasing & Credit Card Business (Shimizu Lease & Card) and Credit Guarantee Business, among others. Its main customers are small and medium-sized enterprises and individuals within Shizuoka Prefecture. As of the end of March 2026, loans outstanding totaled ¥1,268,295 million and deposits outstanding totaled ¥1,631,520 million. The company listed on the Prime Market of the Tokyo Stock Exchange in April 2022.
Business Model
The core of earnings is net interest income, generated by raising deposits from individuals and corporations and deploying them into loans to SMEs and other businesses within Shizuoka Prefecture (period-end balance of ¥1,268,295 million) and securities (period-end balance of ¥267,704 million). In addition, this is complemented by a multi-layered earnings structure comprising fee and commission income (¥11,593 million on a consolidated basis) from investment trust and insurance sales, as well as lease revenue and credit guarantee fee income from subsidiaries. The Bank aims to expand consolidated core net business profit through a combination of cost reduction and credit cost management.
Company Strengths
As of the end of March 2026, the Bank maintained a deposit balance of ¥1,631,520 million (up ¥36,502 million from the previous fiscal year-end) and a loan balance of ¥1,268,295 million (up ¥15,067 million from the previous fiscal year-end). Personal assets under custody also steadily increased to ¥1,456,817 million (up ¥45,410 million from the previous fiscal year-end), demonstrating the depth of the customer base built through years of community-focused business operations.
Non-consolidated operating expenses decreased by ¥557 million year on year to ¥14,302 million, and consolidated expenses (excluding extraordinary items) also decreased by ¥567 million year on year to ¥15,225 million. Sustained expense reductions over multiple periods have increased profit leverage during phases of revenue expansion. In May 2024, the core banking system was migrated to STELLA CUBE, establishing a foundation for greater operational efficiency.
The disclosed non-performing loan ratio stood at 1.05% (down 0.10 percentage points from the previous fiscal year-end), and credit-related expenses continued to improve, coming in at ¥751 million (down ¥294 million year on year). The balance of doubtful receivables decreased to ¥4,889 million (down ¥1,333 million year on year), and receivables requiring monitoring also decreased to ¥811 million (down ¥387 million year on year), reflecting marked qualitative improvement and a sound asset portfolio.
ENVALITH's Perspective
Performance Trend
Consolidated ordinary income was ¥33,674 million (up ¥4,531 million, +15.5% year on year), ordinary profit was ¥3,134 million (+36.2%), and profit attributable to owners of parent was ¥2,000 million (+7.5%). As an external factor, against the backdrop of the Bank of Japan's phased interest rate hikes, interest income from fund management surged to ¥20,521 million (up ¥4,678 million year on year), with both interest on loans of ¥16,152 million and interest and dividends on securities of ¥3,205 million increasing substantially. Meanwhile, funding costs also surged to ¥4,264 million (up ¥2,781 million year on year). Comprehensive income improved significantly to ¥8,344 million (from ¥5,594 million loss in the previous period), and net assets expanded to ¥81,012 million (up ¥7,762 million from the end of the previous period). Over the past five fiscal years, FY2024 recorded a substantial net loss of ¥3,301 million, but the company has been on a continuous recovery trend in FY2025 and FY2026.
Growth Strategy
Strengthening the revenue base by adapting to a "world with interest rates" and expanding personal assets under custody while improving cost efficiency.
As a regional financial institution, the Bank is actively expanding lending to small and medium-sized enterprises and individuals. The non-consolidated loan balance steadily expanded to ¥1,276,622 million (up ¥14,896 million from the previous fiscal year-end). Combined with the improvement in loan yield (1.29%, up 0.23 percentage points) amid the Bank of Japan's interest rate hikes, the Bank aims to achieve sustained expansion of net interest income.
The Bank is expanding personal assets under custody by strengthening sales of investment trusts, individual annuity insurance, and other products. Non-consolidated personal assets under custody reached ¥1,456,817 million (up ¥45,410 million from the previous fiscal year-end) as of the end of FY2026 (ending March 2026). By securing stable non-interest income, the Bank is enhancing its resilience to interest rate fluctuation risk.
Non-consolidated operating expenses were held down to ¥14,302 million (down ¥557 million year on year). While maintaining a downward trend in both personnel expenses and property expenses, the Bank continues to invest in labor-saving measures and digitalization. It aims to strengthen its earnings structure through improvement of the OHR (overhead ratio).
The non-performing loan ratio declined to 1.02% (down 0.10 percentage points from the previous fiscal year-end), while the coverage ratio was secured at 89.65% (up 2.99 percentage points from the previous fiscal year-end). Credit-related costs remained low and stable at ¥528 million (down ¥430 million year on year). The Bank continues to prioritize maintaining asset soundness.
Last updated: July 19, 2026