The Bank of Toyama,Ltd.
8365・Standard Market・Banks
Banking
A core banking segment providing community-based services centered on the Toyama and Ishikawa prefectures
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income | ¥12,033 million | ¥8,069 million | ↑ |
| Banking segment profit (ordinary income) | ¥1,739 million | ¥1,212 million | ↑ |
| Banking segment assets | ¥556,533 million | ¥544,737 million | ↑ |
| Banking segment depreciation expenses | ¥480 million | ¥473 million | ↑ |
| Banking segment capital expenditure (increase in tangible/intangible fixed assets) | ¥511 million | ¥402 million | ↑ |
| Loans outstanding at period-end (non-consolidated) | ¥383,283 million | ¥384,431 million | ↓ |
| Deposits outstanding at period-end (non-consolidated) | ¥512,218 million | ¥502,713 million | ↑ |
| Core net business profit (non-consolidated) | ¥808 million | ¥1,043 million | ↓ |
| Capital adequacy ratio (non-consolidated, domestic standard) | 9.09% | 8.93% | ↑ |
| Non-performing loan ratio (non-consolidated, Financial Reconstruction Act basis) | 2.84% | 2.75% | ↑ |
Business Details
The Bank of Toyama's head office and branches conduct deposit-taking, lending, domestic and foreign exchange operations, and over-the-counter sales of investment trusts and insurance products. With Toyama and Ishikawa prefectures as its primary operating base, the segment positions business financing for small and medium-sized enterprises (SMEs) and retail banking for individuals as its core operations. As the core segment accounting for approximately 87% of the Group's total ordinary income, it rests on three pillars: net interest income, fee income, and market investment income.
Recent Overview
Ordinary income increased 49% year on year driven by a surge in securities-related income, with ordinary profit expanding to ¥1,739 million
In the Banking segment for FY2026 (ending March 2026), ordinary income rose significantly to ¥12,033 million (up ¥3,964 million year on year), primarily due to a sharp increase in other ordinary income driven by gains on sales of equities, etc. of ¥3,680 million (up ¥3,047 million year on year). Increases in interest on loans (¥4,532 million, up ¥753 million year on year) and interest on deposits with banks (¥235 million, up ¥142 million year on year), reflecting the Bank of Japan's policy rate hikes, also contributed. On the other hand, the recording of losses on sales of government bonds and other bonds of ¥3,135 million (up ¥2,946 million year on year) and the rise in interest on deposits (¥1,064 million, up ¥765 million year on year) pushed up expenses, causing core net business profit to decline to ¥808 million (down ¥235 million year on year). Credit costs fell to zero (versus ¥466 million in the previous fiscal year), and ordinary profit reached ¥1,739 million (up ¥526 million year on year). An impairment loss of ¥139 million was recorded as an extraordinary loss.
Key Products
Growth Drivers
- Expansion of net interest income due to improvement in loan yields (1.18%, up 0.19 percentage points year on year) and interest on deposits with banks, driven by the Bank of Japan's normalization of monetary policy (short-term rates rising above 0.7% and long-term rates approaching around 2.4%)
- Strengthening of a stable funding base backed by an increase in individual deposits (up ¥11,649 million from the previous fiscal year-end)
- Expansion of investment income through an increase in the securities balance (up ¥12,529 million from the previous fiscal year-end to ¥135,462 million)
- Expansion of the assets-under-custody business through an increase in the investment trust balance (up ¥4,234 million from the previous fiscal year-end to ¥24,644 million)
- Profit improvement due to a significant decrease in credit costs (provision for loan losses decreased by ¥610 million year on year)
- Maintenance and expansion of loans to the real estate industry (¥79,287 million) and various service industries (¥54,573 million)
Risks
- Risk of narrowing interest margins due to rising deposit funding costs (interest on deposits increased ¥765 million year on year to ¥1,064 million) associated with additional rate hikes by the Bank of Japan (overall interest margin was negative at -0.05%)
- Risk of expanding valuation losses on securities (particularly bonds) amid rising interest rates (net unrealized losses on bonds of -¥4,058 million) and continued elevated losses on sales of government bonds and other bonds
- Risk of renewed increases in credit costs due to a rise in the non-performing loan ratio (2.84%, up 0.09 percentage points year on year) and an increase in doubtful receivables (¥4,948 million, up ¥690 million year on year)
- Long-term decline in the regional economy and loan demand due to population decline and aging in Toyama and Ishikawa prefectures (loan balance at period-end decreased ¥1,147 million from the previous fiscal year-end)
- Downward pressure on fee income, as seen in the decrease in fees and commissions income (¥1,201 million, down ¥156 million year on year)
- High dependence on income from gains on sales of equities, etc. (¥3,680 million), with a risk of earnings volatility in future periods given its temporary nature
Last updated: June 22, 2026