THE SHIMIZU BANK,LTD.
8364・Prime Market・Banks
Banking Business
The core segment of the Shizuoka Bank Group. It handles the full range of regional banking business operations centered on Shizuoka Prefecture.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking Business segment ordinary income (external customers, consolidated) | ¥26,822 million | Not disclosed (segment disclosure not applicable for prior period) | ↑ |
| Banking Business segment ordinary income (including internal transactions, total, consolidated) | ¥27,245 million | ¥22,887 million | ↑ |
| Banking Business segment profit (ordinary income basis, consolidated) | ¥2,975 million | ¥2,034 million | ↑ |
| Banking Business segment assets (consolidated) | ¥1,802,295 million | ¥1,797,098 million | ↑ |
| Loan balance (non-consolidated, fiscal year-end) | ¥1,276,622 million | ¥1,261,726 million | ↑ |
| Deposit balance (non-consolidated, fiscal year-end) | ¥1,634,800 million | ¥1,598,411 million | ↑ |
| Core net business profit (non-consolidated) | ¥4,744 million | ¥1,893 million | ↑ |
| Net interest income (non-consolidated) | ¥16,525 million | ¥14,715 million | ↑ |
| Interest on loans (non-consolidated) | ¥16,241 million | ¥13,267 million | ↑ |
| Interest on deposits (funding cost, non-consolidated) | ¥3,991 million | ¥1,282 million | ↑ |
| Credit-related costs (non-consolidated) | ¥528 million | ¥958 million | ↓ |
| Non-performing loan ratio (non-consolidated, Banking Act / Financial Revitalization Act basis) | 1.02% | 1.12% | ↓ |
| Capital adequacy ratio (domestic standard, non-consolidated) | 8.45% | 8.35% | ↑ |
| Personal assets under custody balance (non-consolidated, fiscal year-end) | ¥1,456,817 million | ¥1,411,407 million | ↑ |
Business Details
The segment operates deposit business, lending business, domestic and foreign exchange business, securities trading, securities investment, investment trust sales, insurance agency, and financial instruments intermediary services. It generates earnings based on relationship banking rooted in the local community, primarily serving small and medium-sized enterprises and individuals within Shizuoka Prefecture. In FY2026 (ending March 2026), of the Group's consolidated ordinary income of ¥33,674 million, this core segment accounted for ¥26,822 million (approximately 79.7%) in ordinary income from external customers.
Recent Overview
Interest on loans and securities income increased substantially amid Bank of Japan rate hikes, driving core net business profit up 150.5% year on year.
In FY2026 (ending March 2026, non-consolidated), interest on loans rose to ¥16,241 million (up ¥2,974 million year on year) and interest and dividends on securities rose to ¥3,402 million (up ¥1,074 million year on year), leading to substantial growth in fund management income. Meanwhile, interest on deposits increased to ¥3,991 million (up ¥2,709 million year on year), raising funding costs as well, but the increase in income outpaced this, and core net business profit reached ¥4,744 million (up ¥2,850 million year on year). Total non-performing loans stood at ¥13,346 million (down ¥1,192 million from the previous fiscal year-end), with the non-performing loan ratio at 1.02% (down 0.10 percentage points from the previous fiscal year-end), reflecting improved asset quality. Valuation gains/losses on available-for-sale securities (non-consolidated) were ¥-14,066 million (a deterioration of ¥1,081 million from the previous fiscal year-end), indicating that valuation losses on the bond portfolio remain substantial.
Key Products
Growth Drivers
- Improved loan yield (non-consolidated loan yield of 1.29%, up 0.23 percentage points year on year) and increased interest on loans, driven by the transition to a "world with interest rates" amid the Bank of Japan's gradual rate hikes
- Expansion of fund management income through steady growth in the loan balance (non-consolidated fiscal year-end balance of ¥1,276,622 million, up ¥14,896 million from the previous fiscal year-end)
- Expanded income from the securities portfolio, including increased interest and dividends on securities (non-consolidated ¥3,402 million, up ¥1,074 million year on year)
- Increase in personal assets under custody (non-consolidated fiscal year-end balance of ¥1,456,817 million, up ¥45,410 million from the previous fiscal year-end) driven by expanded sales of investment trusts and individual annuity insurance, contributing to fees and commissions income
- Continued cost reduction (non-consolidated operating expenses of ¥14,302 million, down ¥557 million year on year), improving cost efficiency
- Improved credit costs due to a decline in the non-performing loan ratio (1.02%, down 0.10 percentage points from the previous fiscal year-end) and reduced credit-related costs (¥528 million, down ¥430 million year on year)
Risks
- Risk that the rapid increase in funding costs (interest on deposits) associated with the rise in policy interest rates (non-consolidated ¥3,991 million, up ¥2,709 million year on year) continues or accelerates
- Risk of expanding valuation losses on the bond portfolio (non-consolidated valuation gains/losses on available-for-sale securities of ¥-14,066 million, ¥-11,117 million after considering derivatives) and the materialization of unrealized losses amid a rising interest rate environment
- Loss risk in securities management, as seen in the increase in losses on sales of government bonds and other bonds (non-consolidated ¥1,442 million, up ¥599 million year on year)
- Risk of a slowdown in loan demand due to uncertainty over the Shizuoka Prefecture economy (continued price increases, geopolitical risks such as US tariff policy, and concerns over a slowdown in overseas economies)
- Risk that the declining trend in the consumer loan balance (non-consolidated fiscal year-end balance of ¥362,469 million, down ¥2,437 million from the previous fiscal year-end) continues
- Risk of limited improvement in profitability, as seen in the low level of the total interest margin (non-consolidated 0.08%, down 0.03 percentage points year on year)
Last updated: June 16, 2026